The Sterling Group Expands Portfolio with Healthcare Linen Services Acquisition

In a significant move, The Sterling Group, a Houston-based private equity firm, has announced the acquisition of Healthcare Linen Services Group (HLSG) from York Private Equity. This acquisition, which was made public on April 10, 2026, positions Sterling to bolster its hold in the healthcare service sector, focusing on essential and mission-critical services.

A Closer Look at HLSG

Founded in 2009 and headquartered in St. Charles, Illinois, Healthcare Linen Services Group has established itself as a leading provider of outsourced linen laundry and management services. HLSG caters to a diverse range of healthcare institutions across the United States, operating twenty processing plants across thirteen states. The company’s services include the rental and laundry of linens, which are critical for maintaining hygiene and operational efficiency in healthcare settings.

In partnering with HLSG, The Sterling Group will leverage the company’s established regional brands to deliver high-quality local services tailored to the unique needs of healthcare facilities. With a favorite local execution model, HLSG collaborates closely with administrators and clinical staff to ensure a steady supply of clean linens to thousands of healthcare establishments.

The Strategic Significance of the Acquisition

Joe LaPorta, CEO of HLSG, expressed gratitude to York Private Equity for their collaboration over the past four years. LaPorta noted that the journey ahead looks promising with The Sterling Group as a partner, given their expertise in scaling essential services businesses. This collaboration aims to broaden HLSG's footprint and elevate its mission of delivering reliable and high-quality laundry services.

Brad Staller, a partner at Sterling, highlighted HLSG's strong customer relationships and its reputation for outstanding service. Sterling recognizes the growing demand for outsourced linen services in the healthcare sector, thus, positioning HLSG for considerable growth in the upcoming years. They plan to utilize their Seven Levers operational improvement framework to enhance and optimize HLSG’s services further.

Support from Financial Partners

The acquisition process involved prominent financial and legal advisors, with Stephens, Inc. serving as HLSG’s financial advisor, while Latham & Watkins and Weil, Gotshal & Manges provided legal and financing counsel respectively. On the other hand, BofA Securities led the financial advising for The Sterling Group with Cain Brothers and Sidley Austin LLP offering further support.

York Private Equity, which has been instrumental in HLSG's growth through strategic investments and acquisitions over the past few years, will continue to support the company as investors. Robbie Shapiro, a Managing Director at York, praised the transformative growth of HLSG during their partnership and acknowledged the operational excellence exhibited by Joe LaPorta and his team.

Looking Ahead

As The Sterling Group moves forward with HLSG under its umbrella, the focus will remain on providing exceptional linen services to healthcare facilities. The acquisition is not merely a business transaction but a strategic partnership intended to enhance the service quality for healthcare providers, reinforcing Sterling’s commitment to investing in essential service providers.

Sterling Group, a firm established in 1982, specializes in private equity and private credit investments with a focus on manufacturing, distribution, and industrial service companies. With approximately $9 billion in assets under management, the firm has successfully raised its profile in the healthcare services sector through this latest acquisition, which exemplifies their dedication to improving essential services across the country.

To learn more about The Sterling Group and their latest acquisition of HLSG, visit their websites for further details.