Earlier this week, I reported that Angelica had opted to dump a planned dividend in favor of an acquisition.
Today, officials for Angelica said they have completed a deal for Texas Linen Co. Karl Schulte, Texas Linen’s CFO, confirmed to me that the deal closed last Friday. Financial terms were not disclosed.
Austin-based Texas Linen calls itself a “launderer to all businesses that use linens or uniforms.” Angelica, of Alpharetta, Ga., provides outsourced linen management services to the U.S. health care industry.
Angelica is owned by the former Lehman Brothers Merchant Banking, which is now known as Trilantic Capital Partners. Last week, Angelica was in the market for a $185 million loan that the company planned to use to pay a dividend to shareholders and refinance debt. But Angelica pulled the loan in order to do an acquisition, according to my compadres at Thomson Reuters Loan Pricing Corp.
Lehman Brothers Merchant Banking acquired Angelica in 2008 for roughly $210 million. In 2009, the Lehman unit spun out from the failing parent and was jointly acquired by its management team and Reinet Investments, a Luxembourg-based investment company, according to a statement from that time. The new entity was named Trilantic Capital.