US-based Alsco seeks permission for Spotless Laundries

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The sale of Spotless Laundries is certainly keeping the minds at the competition regulator busy.

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Spotless owner Downer has had Sydney-based corporate VCA Partners run an auction for its laundries business.  Mario Borg

Hot on the heels of Anchorage Capital Partners-owned South Pacific Laundry seeking ACCC approval to buy Downer Group's up-for-sale Spotless Laundries, United States-owned Alsco has just done exactly the same thing.

The regulator revealed on Monday it was gearing up to start a public review into Alsco's proposed acquisition, and would seek to canvass the thoughts of industry players.

So who's buying Spotless Laundries - South Pacific or Alsco or both?

Well, it turns out it is still neither. For now at least.

It is understood Downer and its advisers are still working to progress Plan A; a sale to Sydney-based private equity outfit Adamantem Capital.

Downer's Plan B is said to be South Pacific Laundry, so is Alsco's proposal Plan C?

More likely, industry types reckon, is that the US player may be getting ahead of the curve and readying the next Spotless Laundries deal; trying to buy the garments business off Adamantem.

Alsco is a provider of things like commercial linen and workwear services and has 27 branches in Australia, with 150 worldwide.

Spotless' auction has been drawn out due to COVID-19. The current version - there have been a few starts in the past five years alone - initially launched towards the end of last year when Spotless told potential bidders that it should make close to $60 million earnings in the 2020 financial year.

Spotless brought Sydney-based corporate adviser VCA Partners on board to help it find a buyer and run the auction.

Adamantem entered exclusive talks to acquire the laundries business earlier this month with the big focus in the sale being what COVID-19's material impact would be on the business.