CCPC obtains commitments in Berendsen (Elis)/Kings Laundry acquisition

July 10, 2019

The Competition and Consumer Protection Commission (CCPC) has cleared, subject to a number of legally binding commitments, the proposed acquisition of sole control of Kings Laundry Limited (Kings Laundry) by Berendsen Ireland Limited (Berendsen). Berendsen and Kings Laundry are two of the three main providers of outsourced flat linen rental and maintenance services to healthcare customers in the State.

Following formal notification to the CCPC on 7 August 2018, an extensive two-phase review was undertaken to establish whether the proposed transaction would result in a substantial lessening of competition in any market for goods or services in the State. In the course of the investigation, the CCPC identified competition concerns arising from the proposed transaction, specifically in relation to the likely impact on prices and quality of services due to the reduction in the number of suppliers available to current and future customers in the healthcare market.

Berendsen submitted legally binding commitments to address the CCPC’s competition concerns. The legally binding commitments require that a set of contracts with healthcare customers that were serviced by Berendsen prior to the proposed transaction would be sold to another supplier, approved by the CCPC, to ensure sufficient competition remains in the healthcare market.

Following detailed consideration and analysis, including market testing, the CCPC concluded that these commitments were sufficient to address the identified competition concerns in the healthcare market. Berendsen has committed not to implement the proposed transaction until after they have sold the contracts.

Further details of the CCPC’s announcement are available here or to sign up for our merger alerts click here

Additional Information

Berendsen Ireland Limited is controlled by Elis S.A. (“Elis”). Elis is a public limited company listed on the Euronext Paris Stock Exchange. Elis specialises in the rental and maintenance of linen, professional garments (i.e. workwear) and hygiene and wellness equipment across Europe and Latin America. In Ireland, Elis, through Berendsen, provides rental and maintenance of workwear, linen, mops, mats, workwear for organisations operating cleanrooms (e.g. pharmaceuticals) and provision of washroom services (e.g. toilet paper, soap dispensers and hand sanitizer). Kings Laundry Limited, a privately-owned company registered in Ireland, is a provider of linen rental and maintenance services to customers throughout the State.

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