Rising surgical volumes and infection control concerns are driving demand for medical textiles. These are specialized materials that meet sterility and hygiene standards in healthcare settings. Uses for such textiles include hospital gowns, wound dressings, bandages and surgical implants, and demand is growing along with healthcare infrastructure.
PE firms have taken of the increase in demand, pursuing deals in medical textiles and adjacent services like specialized laundering.
Starting with the most recent, PE Hub rounded up eight deals in the segment going back to the beginning of 2026.
1. Montagu and Kohlberg acquire Teleflex Medical OEM in a $1.5bn carve-out
Montagu and Kohlberg announced in August the closing of a $1.5 billion carve-out of Teleflex Medical OEM from medtech company Teleflex.
The agreement was announced in December and amounted to $1.25 billion after tax proceeds, according to Teleflex estimates.
Based in Plymouth, Minnesota, Teleflex Medical OEM develops medical textiles like fibers and sutures for surgical and orthopedic applications and implant materials. It also provides interventional catheter components and sub-assemblies and has seven state-of-the-art facilities across the US, Mexico and Ireland.
2. Novanta acquires Riverpoint Medical for $1.45bn from Arlington
In July, Arlington Capital Partners announced the closing of a $1.45 billion sale of Riverpoint Medical to Novanta, PE Hub was the first to report in an exclusive.
The sale agreement was announced in June, with Novanta agreeing to pay $1.2 billion upfront in cash and a $250 million milestone payment in the first quarter of 2027.
Riverpoint is headquartered in Portland, Oregon, and develops and manufactures specialized surgical threads and consumables made of fiber-based, polymer and bioabsorbable materials. These materials are used in minimally invasive procedures, including sports injury repair, trauma and heart surgery.
Under Arlington, which invested in 2019, Riverpoint grew its revenue at a rate of nearly 20 percent CAGR consistently and more than tripled in size. It expanded company leadership, enhanced commercial capabilities, scaled manufacturing operations in the US and expanded into new markets via Costa Rica’s nearshore medical manufacturing hub. It also acquired CP Medical from Theragenics in 2024.
“Riverpoint has a very scarce capability that is in great demand among large OEMs, compared to a basic computer numerical control metal machine company that is more of a commodity manufacturer where capacity is much greater,” Arlington managing partner Matt Altman told PE Hub. “If you can deliver a scarce capability in a resilient way that can be depended upon by the OEMs, and you’ve got capacity to grow with your partners, that’s of great demand in terms of strategic interest and private equity.”
3. Michelin completes acquisition of Arlington-backed Tex Tech Industries
Also in July, Arlington Capital Partners announced the closing of another sale, of Tex Tech Industries to Michelin. The transaction agreement was announced in January.
Tex Tech Industries operates out of Kernersville, North Carolina, and manufactures textile products and specialized coated fabrics for medical devices and products, including personal protective equipment, blood pressure cuffs and cold therapy devices.
Michelin is a French manufacturer of tires, composites and materials across a range of industries, including healthcare and medical devices.
The transaction resulted in FMI Industries, a Fremont, California-based manufacturer spun out of Tex Tech as a new Arlington portfolio company.
Arlington acquired Tex Tech Industries in 2017. Under the PE firm, the company added on Highland Industries’ coating and defense businesses in 2019 and the Gardena, California-based operating assets of SGL Carbon in 2023.
“Michelin’s global footprint makes it an excellent home for Tex Tech to expand the penetration of its innovative products to Europe and the rest of the world,” said Peter Manos, a managing partner at Arlington, in a statement.
4-6. Sterling acquires HLSG; HLSG makes two add-ons
Healthcare Linen Services Group, a portfolio company of The Sterling Group, announced in May an acquisition of Texas Textile Services, a Houston-based provider of healthcare linen and laundry services for hospitals and medical facilities across Texas.
Texas Textile Services provides linen management, processing and distribution services, including collection, laundering, sterilization support and delivery of linens.
HLSG is an outsourced linen laundry and management services provider for healthcare institutions. Based out of St. Charles, Illinois, it operates more than 20 linen processing plants, primarily in the Midwestern and Central US.
The add-on of Texas Textile Services was HLSG’s first following its acquisition by Sterling in April from York Private Equity, the private investment arm of York Capital, which invested in the company in 2022.
Prior to the acquisition by Sterling, the York-backed HLSG made another add-on in March, of Crescent Laundry, a provider of healthcare laundry services based in Davenport, Iowa. The transaction expanded HLSG’s operations into the Iowa market, with Crescent Laundry rebranded as Superior Health Linens.
Other add-ons for HLSG under York included Linen King in 2023 and Reino Linen Service in 2022.
7. Michelin acquires Cooley Group from JH Whitney Capital Partners
In mid-January, Michelin announced the closing of its acquisition of Cooley Group, a provider of polymer-coated textiles for healthcare and medical applications. The seller was JH Whitney Capital Partners.
Michelin announced the transaction agreement earlier in the month.
Cooley Group is based in Pawtucket, Rhode Island, and has three factories in the US and one in Canada. In addition to healthcare, it also develops and manufactures polymeric fabrics for waterproofing, water and chemical containment and other custom environmental needs. JH Whitney Capital Partners acquired the company in 2021.
8. Cornell-backed PureStar acquires healthcare laundry services firm Emerald Textiles
Also in January, PureStar, a portfolio company of Cornell Capital, announced an acquisition of Emerald Textiles, a San Diego-based linen services provider for the healthcare industry. The seller was Pacific Avenue Capital Partners. The transaction closed on the last day of December.
Emerald Textiles operates 12 facilities and three depots on the West Coast. Pacific acquired the company in 2017. Under the PE firm, Emerald acquired Angelica Corporation in 2021, Staheli Laundry in 2019, MediClean Linen and Laundry in 2018, and Campus Laundry and ALM in 2017.
PureStar is a hospitality laundry services provider headquartered in Las Vegas. Cornell Capital acquired it in 2018.
Under Cornell, PureStar has also added on Radiant Services Corporation in 2025 and Apex Linen in 2022.
As demand for medical textiles only grows, PE Hub expects to see more deals businesses operating in the sector in the coming months.