(News Bulletin 247) – The shareholders of the collective catering group approve the rise of Derichebourg in the capital to the tune of 48.4%, in exchange for the takeover of the multi-service branch of the recycling specialist.

The shareholders of the collective catering giant Elior, very indebted and in deficit since the health crisis, approved on Tuesday its takeover by the recycling specialist Derichebourg, via a capital increase and the contribution of the activities of the multiservices division “DMS ” of the last.

This merger will create an “international leader in the sector of collective catering and multiservices with 134,000 employees and a turnover of 5.23 billion euros” declared, during an extraordinary general meeting dedicated to the operation, Elior CEO Bernard Gault.

Accelerating Elior’s turnaround

“A unique opportunity to accelerate the recovery” of Elior, the operation will “strengthen (its) strategic positioning” and “improve its financial profile by mechanically reducing its debt leverage” developed Bernard Gault, who managed Elior for 15 months after the surprise resignation of Philippe Guillemot, who left for Vallourec.

Bernard Gault gives up his chair to the boss of the recycling group Daniel Derichebourg: at 70, this discreet boss of the French waste recycling and business services giant, 232nd French fortune with 500 million euros in assets according to the 2022 ranking of Challengesbecomes CEO of Elior – he will remain chairman of Derichebourg, but will leave his operational functions.

The shareholders notably approved on Tuesday (more than 99%) the raising of the age limit to 80 years, for the positions of president and general manager of Elior.

They also voted largely (over 99% also) in favor of the capital increase which will see Derichebourg, today the main shareholder of Elior with 24.36% of the capital, rise to 48.4%.

It provides for the issue of new Elior shares to Derichebourg, at a price of 5.65 euros per share, offering a premium of 119% on the basis of the closing price of 2.58 euros per Elior share. as of November 23, 2022, last listing before the announcement of discussions with Derichebourg.

A derogation from the takeover bid filing

The transaction allows Elior to acquire DMS (management and maintenance of buildings and facilities, urban infrastructure, HR resources, security, energy efficiency, etc.), which generated 943 million in revenue last year It values ​​DMS at 450 million euros, i.e. 9.1 times its gross operating surplus (Ebitda) 2022.

Approved unanimously by the boards of directors of the two companies, the operation obtained “the various regulatory authorizations, from the European Commission and the Autorité des marchés financiers” – the latter granted an exemption from the obligation to file a takeover bid (OPA) on Elior, said Bernard Gault.

Elior suffered a lot from the health crisis which plunged it into the red and caused its debt to rise to 1.2 billion euros.

On the Paris Stock Exchange around 2:00 p.m. Tuesday, its share yielded 3.76% to 3.17 euros, in a market up 0.63%.

(With AFP)