Here’s a bold statement: In a move that’s set to shake up the textile rental industry, CVC Credit has stepped in to back H.I.G. Capital’s acquisition of Rentokil Workwear France—a deal that’s as strategic as it is significant. But here’s where it gets controversial: Is this carveout a game-changer for the sector, or just another consolidation play in a highly competitive market? Let’s dive in.
CVC Credit has announced its role in providing a tailored financing solution to H.I.G. Capital, enabling the acquisition of Rentokil Workwear France—a powerhouse in the textile rental and cleaning space—from Rentokil Initial plc. This isn’t just any deal; it’s a carefully structured carveout that highlights the growing appetite for specialized, mission-critical services in Europe. And this is the part most people miss: The deal underscores the value of sustainable, recurring-revenue business models in today’s economy.
Based in France, Rentokil Workwear France is more than just a textile provider—it’s a full-cycle service leader. From designing and renting workwear to handling laundry, repairs, and hygiene solutions, the company operates across 34 sites with a nationwide logistics network. What’s truly impressive? It serves over 21,000 customers across diverse industries, locking them in with long-term subscription contracts and boasting remarkably low customer churn. Think of it as the Netflix of workwear, but with a sustainability twist.
This investment is part of CVC Credit’s European Direct Lending strategy, which focuses on senior secured lending to established mid-sized and large European companies. Earlier this month, CVC Credit closed its fourth fund for this platform, raising a staggering €10 billion (including parallel funds and accounts) to fuel similar opportunities. Here’s the kicker: This isn’t just about money—it’s about positioning Rentokil Workwear France for even greater growth under H.I.G.’s leadership.
Eva Boutillier, Managing Director at CVC Credit, shared her thoughts: ‘Rentokil Workwear France stands out as a leader in a highly consolidated sector, delivering consistent financial performance thanks to its recurring business model and loyal customer base. We’re grateful to our CVC Network colleagues for their support in evaluating this opportunity, and we’re excited to see the company thrive under H.I.G.’s guidance.’ Her statement raises a question: Can this model be replicated in other industries, or is it uniquely suited to textiles?
Andrew Davies, Managing Partner and Head of CVC Credit, added: ‘This transaction is a testament to the momentum of our European Direct Lending strategy, especially after the successful close of our latest fund.’ But here’s a thought-provoking question: As more private equity firms target carveouts, are we seeing the rise of a new era in corporate restructuring, or is this just a temporary trend?
In conclusion, this deal isn’t just about numbers—it’s about the future of sustainable, service-driven businesses. What do you think? Is this acquisition a smart move, or is the market for textile rental oversaturated? Let us know in the comments—we’d love to hear your take!
