International private equity firm swoops for cleaning equipment supplier
Laundry equipment supplier JLA has been acquired by international private equity firm, Cinven.
Headquartered in Ripponden, West Yorkshire, JLA provides commercial laundry, catering and heating solutions to more than 25,000 SME customers including care homes, hotels, education providers and housing associations.
Founded in 1973, JLA employs around 900 people, including 300 engineers. Cinven said its Business Services team identified JLA as an attractive investment opportunity given its resilient business model, attractive markets and strong positioning.
Acquisitive JLA has also has potential for organic growth both in its existing businesses and though expansion into new services; having acquired 16 companies in the past five years. The firm has delivered double-digit annual revenue and EBITDA growth organically and through acquisition since 2013.
Stephen Baxter, CEO of JLA, said: “Our focus as a company is on investing in innovative product offerings and expanding our business through both organic growth and acquisitions. We are delighted that Cinven is investing in JLA to support the next phase of our growth.
“JLA is proud of the strength and longevity of its customer and supplier relationships which have underpinned the growth of our business so far. We work hard to keep critical areas of our customers’ businesses running smoothly, safely and effectively – whether it’s in the laundry, kitchen or boiler room.”
Rory Neeson, partner at Cinven, said: “Under the leadership of its strong management team, JLA is a well-run, defensive business with a diversified and loyal customer base. We believe JLA has an excellent platform to support its further growth ambitions, including its national engineering platform and sales and marketing capabilities.
“Cinven’s strategy is to invest in JLA to support the Group’s organic growth – both in its existing core products of laundry and catering solutions and in new areas, including heating and fire safety. We also see a great opportunity for continued growth through buy and build.”
JLA is the ninth investment from the Sixth Cinven Fund. In the UK, Cinven’s current investments include NewDay, the UK consumer finance company and Kurt Geiger, the retailer of footwear and accessories in Europe.
Commercial law firm Hill Dickinson acted for the management team of JLA, with GCA Altium providing corporate finance advice. The firm acted on the transaction alongside Clifford Chance and Skadden Arps Slate Meagher & Flom, who provided legal advice for Cinven and Hg respectively and Baird who provided corporate finance advice to the sellers.
