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Sterling Group buys Midwest healthcare laundry provider HLSG

Healthcare Investor •
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Houston‑based private equity firm Sterling Group disclosed its purchase of Healthcare Linen Services Group from York Private Equity. HLSG, founded in 2009 and headquartered in St. Charles, Illinois, runs laundry plants for hospitals and clinics across six regional brands in 13 Midwestern and Central states. The deal adds a steady‑revenue service provider to Sterling’s portfolio and positions it for further regional expansion.

Sterling, founded in 1982, concentrates on middle‑market manufacturing, distribution and industrial services with enterprise values typically between $100 million and $1 billion. Acquiring HLSG aligns with its strategy to deepen exposure to essential healthcare support functions, which tend to generate stable cash flows even during economic downturns. York Private Equity, the seller, specializes in control investments across healthcare, consumer and wellness sectors broadly.

Financial details of the transaction were not released, suggesting a private‑sale structure common in middle‑market deals. For providers in the 13‑state footprint, Sterling’s capital backing could fund upgrades to processing equipment and expand service contracts with hospital systems. The acquisition underscores continued private‑equity interest in non‑clinical healthcare operations that deliver predictable earnings and strengthen long‑term profitability for the business overall.