Kings Laundry Takeover Cleared

11 Jul 2019 | 10.45 am

Kings Laundry Takeover Cleared

French multinational Elis will be new owner 

11 Jul 2019 | 10.45 am

The Competition and Consumer Protection Commission (CCPC) has cleared the takeover of Kings Laundry by Berendsen Ireland, subject to several legally binding commitments to ensure competitiveness continues.

Berendsen is owned by French laundry services multinational Elis SA and the proposed purchase was notified to the CCPC on 7 August 2018. Kings Laundry specialises in linen hire to hotels and hospitals and was established by Robert McGovern in 2000.

Berendsen and Kings Laundry are two of the three main providers of flat linen rental and maintenance services to healthcare customers in Ireland. The CCPC stalled the purchase while it investigated the likely effects on competition.

That investigation identified concerns specifically in relation to the likely impact on prices and quality of services due to the reduction in the number of suppliers available to current and future customers in the healthcare market.

Berendsen submitted legally binding commitments to address the Commission’s competition concerns. These require that a set of contracts with healthcare customers serviced by Berendsen prior to the takeover would be sold to another supplier, approved by the CCPC, to ensure sufficient competition remains in the healthcare market.

The CCPC has now concluded that these commitments deal adequately with its concerns and the takeover can go ahead. While neither company has revealed details, it’s thought that the purchase price is in the region of €22m to €30m.

Elis specialises in the rental and maintenance of linen, professional garments and hygiene and wellness equipment in Europe and Latin America. In Ireland, its Berendsen subsidiary provides rental and maintenance of workwear, linen, mops, mats, workwear for organisations’ operating cleanrooms, and provision of washroom supplies.

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