Sterling Group has acquired Healthcare Linen Services Group (HLSG), a St. Charles, Illinois-based provider of linen laundry and management services for healthcare institutions nationwide. The seller, York Private Equity, completed the transaction, expanding Sterling’s footprint in the healthcare services market. HLSG operates 20 linens processing plants across 13 states, primarily in the Midwestern and Central US, serving hospitals and clinics with customized laundry solutions.

Founded in 2009, HLSG has established itself as a key player in healthcare logistics, leveraging its 13-state network to ensure efficient delivery and compliance with stringent medical hygiene standards. CEO Joe LaPorta will continue leading the company, ensuring operational continuity amid the transition. This acquisition aligns with Sterling’s focus on diversifying its portfolio into essential healthcare infrastructure services.

The deal strengthens Sterling’s position in a sector critical to hospital operations, where infection control and supply chain reliability are paramount. By integrating HLSG’s Midwestern and Central US footprint, Sterling gains access to a mature market with established regulatory frameworks, reducing logistical complexities for future expansions. Investors may view this as a strategic play to capitalize on the growing demand for outsourced healthcare linen management.

With York Private Equity exiting, the transaction highlights shifting dynamics in private equity-driven healthcare acquisitions. Sterling’s move underscores confidence in the sector’s resilience, even as healthcare providers increasingly outsource non-core functions. The St. Charles, Illinois headquarters now anchors a broader regional strategy, positioning Sterling to compete with larger players in the $10B+ healthcare services market.