Elior Group In Deal To Lift Stake In Elior North America To 92%
Elior Group (ELROF.PK), a French operator in the catering and support services, announced Monday that it has launched an offer to purchase minority interests of Elior North America.
The transaction includes a cash payment of $115 million. It is expected to be accretive on earnings per share as from 2019.
Mike Bailey, Non-Executive Chairman and founder of Elior North America, and Brian Poplin, President and CEO of Elior North America, will remain minority shareholders.
Upon completion of the deal, Elior Group’s stake in Elior North America will increase to 92% from 74%, if all shares are tendered.
Bailey and Poplin would retain together 8% of interests in Elior North America.
Elior Group said the transaction would allow it to simplify its ownership structure by purchasing the shares of the minority shareholders not active in the business. It will also reinforce its partnership with Bailey and Poplin who will remain minority shareholders to lead the next phase of growth in the US until 2022.
Philippe Guillemot, Chief Executive Officer of Elior Group, stated, “This operation supports our expansion strategy in North America. Within the framework of the Elior Group 2021 plan, we intend to increase our position on contract catering in the US, where we see significant opportunities ahead.”
by RTTNews Staff Writer
Source: Read Full Article