Competition regulator to investigate proposed Kings Laundry takeover
Industry sources estimate Kings could sell for between €22.5m and €36m
Kings Laundry is the main supplier of linen to Irish hotels
The State’s competition regulator is to carry out a detailed “phase two” investigation of the proposed takeover of Kings Laundry, the main supplier of linen to Irish hotels, by French-listed group Elis, which operates in the market here via its Berensden operation.
The Competition and Consumer Protection Commission (CCPC) announced on Wednesday that it will accept submissions on the proposed deal until the end of Wednesday, January 29th.
It decided to pursue a detailed investigation after carrying out a preliminary examination of the transaction, which would see the French-owned company take full control of the Kings Laundry operation, which has a staff of between 450 and 550, depending on the season.
Robert McGovern, the founder of Kings Laundry, would remain on to run the business under French ownership, if the transaction goes through.
After its phase two investigation, the CCPC could opt to block the deal, clear it, or clear it with conditions, known as competition remedies.
Industry sources have previously estimated to The Irish Times that Kings Laundry would likely have sold for somewhere between €22.5 million and €36 million, based upon standard multiples in the sector.