May 2026 | Page 7

HEAT EXCHANGER
TRSA News
Market conditions are improving for M & As. Declining interest rates, stabilized inflation, strong corporate balance sheets and robust private equity fundraising are increasing buyers’ capacity to finance deals. Businesses looking for deals hold significant cash reserves and are actively pursuing acquisitions.
M & A activity is rising. While Canada saw lower deal volume but higher total deal value in 2025— driven by energy and resources— both Canada and the U. S. are expected to experience increased activity in 2026. U. S. dealmaking has accelerated due to favorable financing, reshoring trends and policy incentives that encourage domestic investment. In the first quarter of 2026, there have been several deals, such as PureStar’ s acquisition of Emerald Textiles, Ecotex Healthcare Linen Service’ s expansion into Amarillo, TX, as well as Cintas’ s recently announced acquisition of UniFirst.
Textile services remain a consolidating industry. Consolidation is strongest in North America and Europe, with strategic buyers dominating transactions. Their motivations include expanding capabilities, improving operational efficiency, achieving route density and increasing services with existing customers.
Operators that outperform competitors share common traits. Key value drivers include strong labor productivity, efficient utility usage, compliance and infection-control readiness, resilient supply chains and superior customer experience metrics, such as fill rates and repair turnaround times. These operational strengths translate directly into higher valuations.
Industry outlook is strong. M & As are expected to increase due to aging ownership, rising capital requirements and customer demands for higher-quality facilities. Strategic buyers are pursuing synergies through facility consolidation, route efficiency and expanded service offerings. Real estate remains a significant factor because a stable plant location directly affects route optimization and cost structure.
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May 2026 • Textile Services 5