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03/2010

HG CAPITAL takes majority stake in JLA

UNITED KINGDOM Industrial Services / Equipment Rental EV £100–350M

Context

Private equity firm HgCapital successfully saw off competition from rival financial sponsors to secure the buyout of JLA (John Laithwaite Associates), a leading UK commercial laundry equipment supplier. This primary transaction marks the inaugural platform investment for the sponsor's £1.85 billion Fund 6. The deal effectively resolves the target’s succession planning by facilitating the immediate introduction of a new, highly experienced management team explicitly tasked with spearheading the company's operational expansion. The investment thesis firmly aligns with HgCapital’s strategy of acquiring highly defensive, niche assets underpinned by strong cash generation capabilities. Despite complex historical financials characterized by heavy depreciation charges, JLA boasts an incredibly resilient business model anchored by long-term rental and maintenance contracts. Backed by the sponsor, the newly installed management team is mandated to accelerate the company's evolution from a traditional equipment distributor into a premier B2B critical services provider, maximizing customer lifetime value across its core sectors.

JLA, which reported an EBITDA margin of [members only] in 2009, is valued in this transaction at an EV/EBITDA multiple of 5x–12x, representing a discount to the average currently observed in the Business Services sector (11.4x).

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Target

Established in 1973 and headquartered in Ripponden, West Yorkshire, JLA is the UK's undisputed market leader in the supply and servicing of mission-critical commercial equipment. Originally carving out its niche as a specialized distributor of industrial washers and dryers for hospitals, university accommodations, and healthcare facilities, the company has vastly diversified its operational footprint. Through its flagship "Total Care" subscription model, JLA now provides fully integrated, hassle-free solutions encompassing commercial laundry, catering infrastructure, heating, and critical fire safety systems, ensuring strict regulatory compliance and minimizing operational downtime for its extensive client base.

Ent. Value

£100–350M

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

5x–12x

EV / EBIT

[members only]

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2009
[members only]
£5–25M
[members only]
2008
[members only]
£5–25M
[members only]

Other operations with JLA

Other operations with JLA

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
05/2018CINVENJLAUNITED KINGDOMEquipment Rental

REFERENCES

Valuation range: EV £100–350M

EBITDA range: £5–25M

EV/EBITDA range: 5x - 12x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of JLA by HG CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: jla

Acquirer: hg capital