Ecotex Healthcare Linen Service Inc and Fengate Capital Management have agreed to buy Booth Centennial Healthcare Linen Services, a Mississauga, Ont.-based provider of healthcare linen, laundry and surgical sterilization services. No financial terms were released. The sellers in the deal are 22 hospitals and healthcare institutions that currently own the not-for-profit Booth. Ecotex and Fengate said they expect to assume ownership of the business in June. Toronto-based Fengate is an infrastructure and real estate investment firm. Last December, it acquired two British solar parks for $110 million.
Ecotex Healthcare Linen Service and Fengate Capital Management Enter a Definitive Agreement to Acquire Booth Centennial Healthcare Linen Services
TORONTO, March 1, 2016 /CNW/ – Ecotex Healthcare Linen Service Inc. (“Ecotex”) and Fengate Capital Management (“Fengate”), on behalf of the investment funds under its management, announced today that they have entered into a definitive agreement to acquire Booth Centennial Healthcare Linen Services (“Booth”), the largest single-site healthcare laundry facility in Canada, which processes over 35 million kilograms of linen per year. Booth is a not-for-profit linen and laundry service provider owned by 22 member hospitals and healthcare institutions. Booth is located in the Greater Toronto Area. As part of the transaction, Ecotex and Fengate will enter into long-term service agreements with the members of Booth.
“We have reached a breakthrough agreement with Booth, one of the most respected healthcare laundry and linen service providers in North America,” said Randy Bartsch, President and CEO of Ecotex, “Using smarter linen solutions we will help members and customers continue to provide a safe, comfortable environment for patient care while guaranteeing cost and service quality.”
Lou Serafini Jr., President and CEO of Fengate added, “We are very excited to develop long-term partnerships with the member hospitals and to work with our partner, Ecotex, to continue providing this essential service.”
“This is the right long-term partnership for our Booth members as it delivers long-term value, stability and certainty,” said Michael Papadakis, CEO of Booth. “It allows hospitals and healthcare organizations to focus on delivering healthcare and providing the best patient care and experience. I have worked with the Board of Directors throughout this process and am very pleased that we have an agreement to take to our 22 members.”
The transaction has been unanimously approved by the Board of Directors of Booth. The transaction is subject to approval by the members of Booth. Ecotex and Fengate anticipate assuming ownership of Booth in June 2016.
Booth Centennial Healthcare Linen Services is the largest provider of healthcare linen, laundry and surgical sterilization services to hospitals and long-term care facilities in Ontario with a market share of 40%. Booth solely focuses on healthcare and services over 100 customer locations within a 400 km radius of its Mississauga, Ontario facility. Booth is the only facility in Ontario to be certified as Hygienically Clean from the Textile Rental Services Association (TRSA) and be certified as ISO 13485 for Medical Devices both as a Manufacturer and a Distributor. For more information, please visit www.bchls.ca.
Ecotex Healthcare Linen Services is a major, Canadian based provider of healthcare laundry and linen services to hospitals, sub-acute and medical facilities in western Canada and the United States. Ecotex provides a comprehensive range of general linen and operating room linen processing, management and distribution services to large hospitals, medical clinics and other commercial accounts. Ecotex is a privately held corporation with offices in Seattle, WA and Vancouver, BC and has over 500 employees. For more information, please visit www.ecotex.ca.
Fengate Capital Management is a leading alternative asset management firm specializing in the management of investment funds on behalf of Canadian and international pension funds. Fengate has over $2 billion in capital under management with expertise in infrastructure, commercial real estate and private equity. With significant experience in public-private partnerships, independent power projects and real estate developments, Fengate targets high quality, long term investments across North America and select international markets. For more information, please visit www.fengate.com.
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