The industrial laundry business is more than a bit of froth. Just ask Consolidated Linen Service, the regional Queensland enterprise that has just secured $6 million in growth capital from the Australian Business Growth Fund (ABGF).
Consolidated Linen Service (CLS) is a major launderer of linen and garments, with service areas stretching from the Sunshine Coast through to the Whitsundays and Airlie Beach region.
It boasts 800 customers across the mining, healthcare, hospitality, and aged care sectors, who require 400 tonnes of laundry services each week — which CLS says is equivalent to 700,000 towels’ worth of laundry.
Founded in 1990 by Neville and Morena Roberts, the venture is still family-run, with the next generation of Roberts now overseeing its day-to-day operations.
In a statement, the ABGF said CLS perfectly fit its investment matrix: a well-established and mature enterprise capable of expanding to serve a growing market, that is too ‘small’ for major private equity firms but too large for family offices.
The sector is particularly interesting, given the ongoing reliance of many essential industry sectors on industrial laundry services, and the logistical challenges inherent to carting linen back and forward over vast distances.
The investment will help CLS expand its operations and delve into new technical solutions, ABGF said.
“ABGF’s investment means CLS can look towards making that important step-change to continue growing,” said ABGF investment director Jack Lin.
“With a proven track record and the increasing demand for laundry and textile rental services, CLS is well positioned to continue supporting Queensland’s most critical industries.”
Like all ABGF investments, the fund will take a minority stake in the venture.
Adam Roberts, CLS managing director, said it was the right time to bring a new investor into the fold without ceding full control to an external stakeholder.
“ABGF respects our wish to maintain control, honouring the values my father instilled in our family business,” he said.
“We are also looking to ABGF as a partner that offers more than just capital; their expertise and contacts will help guide us to make timely, informed decisions,” Roberts added.
The investment comes as CLS eyes a growing population, and the projected boom in hospitality businesses through the 2032 Brisbane Olympics.
CLS hopes to incorporate new robotic processes into its laundry services, along with other technical upgrades.
“Now we are developing chemical dosing and machine learning programs to further increase efficiency, drive down operating costs, prolong machine life, cut down on chemical usage lifting environmental outcomes, and improve safety,” Roberts added.
With the CLS investment in place, the ABGF has deployed $160 million of its $540 million capital pool.
CLS now joins Australian-born businesses like sun-smart clothing brand Solbari, skincare formulator INSKIN COSMEDICS, and specialty pipe and fittings manufacturer Derwent Industries in the ABGF portfolio.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
Comments