Finnish textile services group Lindstrom said on Wednesday it would become the market leader in workwear rental and cleanroom business in China following its acquisition of U.S. Cintas group's business in China.
The transaction was announced in the Finnish capital Helsinki, but the price was not published. Juha Laurio, president and CEO of Lindstrom, said in a press release that the new entity will double the size of Lindstrom in China.
The 300 employees of Cintas in China will be integrated into the 250-people workforce of Lindstrom there, and it is to be completed in early 2021, according to Laurio.
Laurio said Lindstrom, which has been in China since 2006, expects a two-digit growth percentage in China after the merger.
"These textile services have currently a low penetration level in the Chinese market and thus the market potential is huge," he told local business daily Kauppalehti, noting that the impact of COVID-19 epidemic has already been overcome in China.
Laurio gave the customers' total in China as 1,060 enterprises. He told Kauppalehti that Lindstrom plans to widen its business in China into rentals of carpets.
According to Kauppalehti, Lindstrom's customer base is mainly medical, biological and electronic industries.
Lindstrom Group is a textile rental service company operating mainly in Europe and Asia. Established in 1848, the company is headquartered in Helsinki. Enditem