Activist hedge fund firm Pirate Capital ended a proxy battle with Angelica Corp. after the healthcare linens company agreed to explore a possible sale.

In July, Pirate demanded Angelica’s board hire an investment bank to put the company on the block or prepare for a lengthy proxy war. The firm, which owns about 9.8% of Angelica, nominated two of its own for the company’s board.

On Tuesday, Angelica announced it had reached an agreement with Pirate to end the contest after the company hired Morgan Joseph & Co. to seek a possible sale. Angelica will also be separating its chairman and chief executive officer positions.

In a filing with the Securities and Exchange Commission, Pirate described its pact with Angelica as an oral agreement. The firm halted a similar proxy fight last year after the two sides agreed to drop an acrimonious round of lawsuits.

Norwalk, Conn.-based Pirate has pushed for a breakup of The Brinks Co. and to stop the sale of energy company Aquila. It also has large stakes in auto repair chain Pep Boys, Allied Defense Group and Hilton Hotels. Earlier this month, it halted redemptions in two of its hedge funds.