French investment company Eurazeo has reached an agreement with PAI Partners to acquire Elis, a pan-European provider of textile and hygiene rental and cleaning services, for an enterprise
French investment company Eurazeo has reached an agreement with PAI Partners to acquire Elis, a pan-European provider of textile and hygiene rental and cleaning services, for an enterprise value of EUR2.28bn. The transaction is subject to authorisation by the French and German competition authorities, which is expected early in the fourth quarter.
Eurazeo and Eurazeo Co-Investment Partners will make a combined equity investment of around EUR500m. The management of Elis will also invest alongside Eurazeo and ECIP in the acquisition vehicle.
The core activities of Elis, which has around 270,000 customers, include the rental, distribution and cleaning of uniforms, other textile items such as flat linen, and products such as washroom equipment, floor mats, water coolers and espresso coffee machines.
The group is leader in the French market and is also active in Portugal, Belgium, Spain, Italy, Germany, Luxembourg, Switzerland and the Czech Republic. Elis had revenues last year of around EUR950m and employs some 13,000 people across Europe.
‘Elis is a leading company which benefits from solid growth potential across Europe as the outsourcing of rental and cleaning of textile and hygiene services continues to increase,’ says Gilbert Saada, member of the Eurazeo executive board.
‘We will look to expand internationally and develop its activities in countries such as Germany, Italy, Belgium, Portugal and Spain where Elis already has leading positions, and explore new markets, products and service offerings.’
Eurazeo, which has more than EUR6bn in diversified assets and a market capitalisation of EUR5.5bn, is a majority or key shareholder in companies such as APCOA, Europcar, Rexel, B&B Hotels and ANF, and holds significant stakes in Danone, Veolia and Air Liquide.