Cleaning and catering services company Spotless is reportedly preparing to divest its laundries business.
According to the Australian Financial Review, Spotless has hired PwC to prepare vendor due diligence reports on the laundries unit.
Spotless’ laundries is understood to be one of the country’s biggest outsourced provider of laundry and linen services, washing sheets and towels for hotels and aged care facilities, tablecloths for function centres and workwear for employers.
The laundries unit recorded $264.4 million revenue in the year to June 30 and $60.4 million in earnings before interest, tax, depreciation and amortisation. Revenue dropped 2.5 per cent in the 2019 financial year, while EBITDA was up more than five-times.
It is not the first time Spotless has moved to offload its laundries unit. In 2016 the company announced the potential sale of its laundries businesses, following a number of approaches from prospective buyers.
In 2017 it opened a 9000sqm state-of-the-art laundry in Melbourne’s east following the takeover of Victorian linen and laundry business, Cabrini Linen Service.
Spotless’ delisted from the ASX earlier this year in August.
INCLEAN contacted Spotless who declined comment
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