Ecotex to Purchase Mohawk Medbuy Linen Services and Make Major Investment in Hamilton Facility

BURLINGTON, ON (January 12, 2024) – Mohawk Medbuy Corporation (MMC) is pleased to announce the sale of its Linen Services division to Ecotex Healthcare Linen Service, a family- owned leader in the health care linens service business in Canada and the United States. The sale follows a competitive process facilitated by a third-party and conducted in collaboration with MMC Members. The outcome meets the criteria Mohawk Medbuy established at the outset to ensure continued employment for its Hamilton-based employees and long-term service commitments to the hospitals and other customers it supports. Divesting its linens business will allow MMC to focus on its growing, national health care supply chain services.

“Mohawk Medbuy has a 50-year legacy of providing quality Linens Services and we’re very proud of our team,” said Peter Longo, MMC’s Chief Operating Officer. “Ecotex is extremely well equipped to build on the dedicated service we’ve provided – and is bringing new investments in equipment to the Hamilton plant. It’s a very positive next step for our Linens staff, our Member hospitals and customers – and the City of Hamilton.” Ecotex provides health care laundry services using its large regional linen reprocessing facilities. Their use of environmentally friendly practices has earned the company a Clean Green certification. “We’re thrilled that MMC and their hospitals selected Ecotex based on the value, quality and savings we offer,” said Ecotex President and CEO, Bryan Bartsch. “We look forward to having the 200+ person team in Hamilton become part of the Ecotex family and to delivering our high standard of service to our new customers. To ensure that, we’re making infrastructure investments to the Hamilton facility this year, including a new Tunnel Washer, Press, Shuttle & Dryer System.”

For hospitals currently served by MMC, Ecotex brings a new level of scale and resources. Based on the company’s expertise and strong track record within health care, the selection of Ecotex was firmly endorsed by all the hospitals currently served by MMC’s linen operations. “This is a very good outcome for our patients, our hospital, and our community,” said John Aldis, Senior Vice President, Finance and Corporate Services at St. Joseph’s Healthcare Hamilton. “It reflects the effort MMC undertook to engage Member hospitals through the process, align on key objectives, and find the best match in a partner that really understands and can meet our evolving linen service needs into the future.”

The selection of Ecotex was the right decision, according to Paul Truscott Jr., Senior Vice President and Chief Operating Officer of Health Sciences North (HSN). “Linens are essential to patient care. The scale, resources and operational redundancy that Ecotex brings to the table gives us great confidence that they will deliver for our hospital. Equally important, they’re able to provide cost savings in the process. That’s a win-win for HSN.”

Mohawk Medbuy and Ecotex are currently implementing the transition phase to ensure a seamless service handoff on February 29, 2024.

About Mohawk Medbuy

Mohawk Medbuy Corporation (MMC) is a national, not-for-profit, shared services organization that supports hundreds of health care providers across Canada, as well as child welfare agencies and otherpublic sector organizations. MMC provides value-driven contracting and procurement solutions formedical/surgical supplies, pharmaceutical products, local sourcing, capital (equipment, FF&E and redevelopment) and nutrition solutions. Other services include data analytics, in-hospital support, warehousing/logistics, technology, procure-to-pay, accounts payable and linens.

MMC is actively supporting the creation of a resilient value chain that incorporates environmental social, and economic wellbeing and fosters the participation of Indigenous businesses. Based in Burlington, ON, MMC operates regional hubs in Toronto, Thunder Bay, Kingston, Brantford and London, a distribution centre in Oakville and a linens facility in Hamilton.

About Ecotex

Ecotex Healthcare Linen Service (Ecotex) is family owned and operated company founded in 1959. Over the past 65 years the company has evolved and grown. Ecotex provides Smarter Linen Solutions™ andpartners with large regional healthcare customers. Ecotex has an exclusive focus on the healthcare market, our focused approach has propelled our expansion and healthcare subject matter expertise.Ecotex supports both urban and rural healthcare facilities, ranging from hospitals to long-term care centers. The Ecotex team is comprised of 1,700 employees producing millions of hygienically clean hospital linens each year.