French caterer Elior to acquire Derichebourg’s Multiservices division

Dec 20 (Reuters) – French caterer Elior Group (ELIOR.PA) announced on Tuesday it will acquire its biggest shareholder Derichebourg’s (DBG.PA) Multiservices division (DMS), a tie-up that will lead to consolidated 2021-2022 revenue of 5.23 billion euros ($5.54 billion) and approximately 134,000 employees.

Under a memorandum of understanding (MoU) signed by the groups, Elior would acquire DMS in exchange for new Elior shares issued to Derichebourg at 5.65 euros per share, representing a premium of 119%, and increasing Derichebourg ownership to 48.4%.

The acquisition has significant potential value creation with at least 30 million euros in run-rate EBITDA synergies and a double-digit positive impact on EPS as soon as FY 2024, Elior said in a statement.

The transaction is subject to Elior Group shareholders’ approval at an extraordinary general meeting during April-May of next year.

($1 = 0.9441 euros)

Reporting by Federica Mileo; Editing by Tom Hogue

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source: reuters.com