Celtic Acquires Millbrook Linen & Appoints New Chairman
6th February 2018 - General
ANNOUNCEMENT OF ACQUISITION February 5th, 2018
Rosslare Rd, Drinagh, Co. Wexford
Dear Valued Customers and Partners,
Celtic Linen is pleased to announce the acquisition of Millbrook Linen, located in Naas, Co. Kildare. The acquisition was completed and finalised officially on February 5th, 2018.
Celtic Linen has grown to become one of the leading linen rental service providers in Ireland, serving both healthcare and hospitality sectors. Celtic is now valued at €20 million after the acquisition of Millbrook Linen. The new acquisition now creates a platform for Celtic to enhance its offering to our clients and opens new doors for both the healthcare and hospitality markets to make new choices about our services. We are excited about our acquisition of Millbrook as it allows us to expand to a second location and to expand our services to include the growth in tourism in the Irish market. This transaction will enhance Celtic’s capacity and improve our services to hospitals, care homes, hotels, hostels and our restaurant customers in the Dublin area and across the rest of the country.
We decided to seek to grow our laundry services through the acquisition because we believe that as a combined larger organisation it allows us to provide a wider range and depth of services. It provides Celtic with a second laundry facility located in Naas, Co. Kildare. This will operate alongside Celtic’s existing facility in Wexford and increase Celtic’s headcount for the combined group to over 300 employees. As you know, finding a reliable laundry service is a challenge. A larger organisation that’s closer to the market will also mean our clients will benefit from an even more and reliable laundry service.
Celtic Linen has also appointed Tom Joyce as Chairman and a non-executive director of the Group. Tom is a textile industry veteran having been managing director of Connacht Court Group until 2003.
Millbrook Linen’s, Karen and Keith Sheridan, will join the management team of the enlarged group and become shareholders in the enlarged Celtic Linen group. Funding for the acquisition was provided by Dublin-based SME private equity investor, Causeway Capital, with debt financing provided by Ulster Bank. Causeway Capital initially invested in Celtic Linen in December 2016, backing the management team led by CEO Donald Campbell and CFO Joanne Somers to lead the business out of examinership. The team has since completed a multi-million euro investment programme at Celtic Linen’s facility in Wexford to improve the quality of linen and the efficiency of the equipment resulting in improved service delivery for customers.
Commenting, Donald Campbell CEO of Celtic Linen said:
“The laundry and linen business demands determination and significant investment in state-of-the-art facilities to meet customer requirements in our core sectors. This transaction caps a period of significant investment for Celtic Linen during 2017. We have now completed a major upgrade to our Wexford facility investing in new, high quality textiles to improve the efficiency of our business and the quality of service for our customers. I want to take this opportunity to thank all of Celtic’s and Millbrook’s customers, employees and suppliers for their continued support.”
He added: “We are really pleased that Keith Sheridan, Karen Sheridan, Rhona Sheridan and the rest of the Millbrook team will be joining Celtic Linen. Millbrook has an excellent reputation with its customers and the combined business will be much better placed to provide an excellent service to hospitality and healthcare customers throughout Ireland.”
Commenting, Keith Sheridan of Millbrook Linen said:
“We are delighted to be joining forces with Celtic Linen. This transaction enables Millbrook to offer a better service to existing customers and also provides nationwide coverage. Karen and I are delighted to be joining the Celtic team and helping the business to grow.”
Celtic’s acquisition will allow us to enhance these important relationships by providing a full range of high quality linen rental and premium linen services while we continue our mission of creating Ireland’s most preferred and innovative linen rental provider. We look forward to discussing those in more depth with you in the near future. However, there are several things that we want to point out that will not change:
• The services we have provided you in the past will continue
• Our existing phone numbers will continue to be the ones you can use to contact us
If you have any questions about this exciting news and what it will mean for you, please contact any of us at any time. We are grateful to you not only for giving us the opportunity to provide you with linen rental services but for your loyalty and friendship. We are confident that our new acquisition will serve us all well.
Donald Campbell CEO