French laundry giants Elis agree Berendsen takeover deal

- Leadership - Jun 08, 2017

FRENCH laundry firm Elis has finally struck a deal to buy out its UK rival Berendsen.

Preliminary terms have been settled on an agreement reportedly worth £2.2bn, weeks after initial negotiations between the pair had ground to a halt.

Elis had gone public with its bid of £11.73 per share but the final price is set to be at £12.50 per share excluding an interim dividend.

The approach comprises £5.40 in cash and 0.403 new Elis shares for each Berendsen share.

Elis’ board appears to be fully behind the deal and doesn’t expect any issues in persuading shareholders, with a deadline of Saturday 15th June set for the firm offer to be submitted.

The buy-out, according to the joint statement released this week, will ‘create a strong Pan-European leader in textile, hygiene and facility services’.

Elis currently serves over 240,000 clients in Europe and South America, with its model built around offering linens, professional garments, and hygiene and wellness equipment for rent.

Berendsen operates 60 sites in the UK, employing 9,000 workers in the textile business with industry, commercial and public-sector clients.

 

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