(News Bulletin 247) – The industrial laundry specialist announced Thursday evening the acquisition of the Carsan group, an initiative which allows it to strengthen its position in a dynamic Spanish market.

At the beginning of October, the Elis group abandoned the acquisition of the Vestis and Unifirst groups, both specializing in the rental and maintenance of uniforms in the United States. The market did not hold it against the French group for having thrown in the towel. Quite the contrary. The operators then welcomed, with undisguised enthusiasm, the abandonment of these potential merger projects, and in particular that of Vestis fearing that this acquisition would be too big for the French group.

Targeted acquisitions

Elis has therefore, for the moment, curbed its desires for America, but not its initiatives in terms of acquisitions. The French group this time played the card of small, targeted acquisitions, known as “bolt-on”. He announced Thursday evening the acquisition of the Carsan group in Spain, a company which achieved a turnover of around 8 million euros in 2023.

This group has a factory in Getafe and mainly targets high-end hotel and catering customers in the Madrid region.

“In our eyes, this is an acquisition fully in line with the group’s strategy which allows Elis to strengthen its positions in the high-growth Spanish market,” explains Julien Thomas, analyst at TP ICAP Midcap.

The group therefore continues to weave its web across Europe, through small targeted acquisitions. At the end of October, Elis took over the Batavian group Wasned, which achieved a turnover close to 7 million euros in 2023, and which also targets hotel and catering customers.

TP ICAP Midcap reacted to this acquisition and considered that it “ideally completes the acquisition of Moderna which was carried out during the first part of the year”.

Elis announced this acquisition the day after the publication of its third quarter activity update. For the period covering the months of July to the end of September, the industrial laundry specialist reported turnover up 5.5%, including 4.9% organically, to 1.18 billion dinars. euros. At the same time, he confirmed his annual objectives.

The company still expects for 2024, organic growth in turnover between 5.2% and 5.5%, an Ebitda margin (profit before interest, taxes, depreciation and amortization) between 35.2% and 35 .5% and current net income per share above 1.75 euros on a diluted basis.

Elis also recalled that it was studying “numerous opportunities for small acquisitions”, namely companies with a turnover of less than 30 million euros, based in the geographical areas where the group is present. The operation announced the day before confirms Elis’ proactive policy on these small acquisitions.

On the Paris Stock Exchange, Elis reacted little to this announcement, the stock was down slightly by 0.2% to 19.32 euros this Friday around 10:15 a.m.