Maidenhead: Lloyds Bank supports Clean Linen Services with £13m financing package

Clean Linen Services, a leading privately-owned commercial laundry business, has secured a new £13m financing package from Lloyds Bank to support further investment in its state-of-the-art facilities across the South East and drive its continued growth.

The tailored package - provided by the bank’s mid markets, commercial finance and asset finance teams - includes a term loan, revolving credit facility, trade finance agreement, invoice discounting line and an asset finance facility.

Though founded in 1886, Clean Linen Services is a new relationship for Lloyds Bank’s Thames Valley-based team. It provides linen and garment rental, laundry and dry cleaning services, predominantly to the hotel, facilities management and hospitality sectors.

The Maidenhead-headquartered firm, which also has modern laundries in Camberley, Reading and Banbury, is the second-largest commercial laundry operator in the London hospitality market, with clients including Radisson Edwardian, Travelodge, Compass and Hilton. In addition, it fulfilled a contract to supply linen to LOCOG for the athletes’ village at the London 2012 Olympic and Paralympic Games.

The business also supports contracts throughout the South East and other areas of the UK through its shareholding in The Brilliant Laundry Group – an association of regional commercial laundry companies.

Clean Linen Services, which employs over 500 people, has undergone significant organic growth over the past ten years, increasing sales from £10m to over £28m under the stewardship of CEO Jason Miller. The modernisation of its plants was central to this expansion, increasing productivity and the volume of laundry the company can manage.

Miller said: “This deal represents another milestone in our strategic development, following a period of sustained growth and modernisation during which we have clearly emerged as the South East and London’s leading commercial laundry company.

“The financing will enable us to continue to invest in world-leading facilities, such as our Camberley plant, in an increasingly-competitive and advanced industry – delivering expansion and value to the benefit of our customers, employees, shareholders and the local communities in which we operate.

“Lloyds Bank’s focus on understanding our business and delivering the best package was evident, and we look forward to developing a strong working partnership with the team over the coming years.”

Peter Jackson, relationship director at Lloyds Bank Commercial Banking’s mid markets team in the Thames Valley and the south, commented: “Clean Linen Services has successfully grown in recent years thanks to its strong management team and well-invested, highly-efficient operations. Its reputation for quality, service and delivery will support the continuation of the business’ positive trajectory as the economic recovery continues.”