BrazilM&A advisors support Argos Wityu with acquisition of laundry group Lavatio
German B2B laundry group Lavatio has been acquired by Argos Wityu, one of Europe’s larger private equity firms in the mid-market space. Meet the dealmakers on the buy-side of the transaction.
Headquartered in Hünfeld, Lavatio provides textile rental and laundry services to more than 2,200 active customers in the hotel, restaurant and catering as well as healthcare and workwear segments in Germany and Switzerland. With its seven local brands, and partner laundries, the company processes more than 230 tons of laundry per day.
Teaming up with Argos Wityu, Lavatio has the ambition to accelerate its growth, both organically and through add-on acquisitions. Organic growth will be pursued by expanding capacities at the group’s existing sites, while the acquisition of additional laundries will kickstart expansion into new regions.
At the same time, Lavatio has set the ambition to improve its sustainability performance, among others by concentrating on more sustainable textiles, a decrease in energy and gas consumption, and more efficient use of water and detergents.
Lars Blechschmidt, CEO of Lavatio, said that the transition to a more sustainable offering will not only underscore the company own ESG objectives, but also provide an impetus to the company’s positioning in the marketplace. “Being sustainable has become a true differentiator in the market and we look forward to focusing on our transformation while further growing our business.”
Indeed, environmental awareness in the laundry market is rising, notably among hotel customers. Many hotel chains have committed to net-zero targets, boosting demand for sustainable laundry services. Offering more sustainable solutions and reducing its carbon footprint will meet the expectations of society and consumers and enable Lavatio to position itself as an ESG leader in the market.
The transaction, which also sees BNP Paribas invest as a minority shareholder, is expected to close by the end of the year. Financial terms have not been disclosed.
The dealmakers
Buyer Argos Wityu was advised during the process by a large number of M&A consultancies, with Bluemont serving as commercial advisor, Rödl & Partner as financial and tax advisor, and H&Z Management Consulting serving as the advisor for environmental and ESG. Clearwater International provided debt advisory, Poelllath supported the tax structuring work, while MRH Trowe advised on the deal’s insurance specifics.
Legal support was meanwhile provided by Oppenhoff & Partner and McDermott Will & Emery.
Commenting on the deal, Fabian Söffge, partner at Argos Wityu, said: “Lavatio is among the top players in the laundry service market in Germany and has a great position to benefit from the expected overall market growth as well as from the increasing demand for sustainable solutions. We look forward to working with the management team and supporting them in their ambitious growth plans.”
