European fund manager STAR Capital Partners has acquired Synergy Health Managed Services Limited – the operator of the UK Linen Management Services (LMS) business – for GBP50 million.
This is the first acquisition made by STAR’s third fund (STAR III).
The LMS business of Synergy Health Managed Services Limited, a wholly owned indirect subsidiary of STERIS plc, was created in 1996 and provides a range of sterile linen and laundry management services to hospitals and other healthcare providers throughout the UK including NHS trusts, private hospitals, ambulance trusts and healthcare and community trusts. The purchased company owns three dedicated LMS facilities in Derby, Sheffield and Dunstable.
STAR’s aim is to support the continued growth of the business organically, continuously improving operating efficiencies and by exploring adjacent markets and services. LMS’ ability to operate as an independent company is supported by its strong performance to date and its highly stable, non-cyclical, business.
The newly acquired business will continue to be run by its experienced management team, led by Mike Langhorn. He was appointed managing director of the division in 2013 and has already been instrumental in growing the business.
The LMS acquisition is the second acquisition by STAR in the healthcare and public services sector, following its investment in Alloheim Senioren Residenzen AG in March 2008.
Paul Gough, managing partner of STAR, says: “STAR is acquiring a business with a strong market position in an attractive sector. LMS provides a critical service to its long‐term customer base making this an ideal investment for STAR III. The growth opportunities available to LMS as an independent company, exploring adjacent markets and new services, require further capital and expertise which STAR is well placed to provide. We look forward to working with Mike and his team to accelerate the growth of the business.”
Langhorn adds: “With STAR’s support we will be able to continue our strong growth as an independent company. We look forward to expanding our loyal customer base, which relies on our range of critical sterile linen and laundry management services, and to pursuing new opportunities in new markets.”
