Elis Makes Sweetened Bid to Acquire UK Textile and Facility Services Firm Berendsen.
M2 EQUITYBITES-May 22, 2017-Elis Makes Sweetened Bid to Acquire UK Textile and Facility Services Firm Berendsen
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22 May 2017 - French linen and workwear rental and laundry services firm Elis SA has made a revised proposal to combine with UK-based textile maintenance services firm Berendsen plc (LSE: BRSN) to create a Pan-European group in textile and facility services, the company said.
The combined group would have a presence across Northern and Southern Europe with high-growth Latam exposure and an enhanced position in Germany.
Under the deal, Elis would acquire each Berendsen ordinary share for a combination of GBP 4.40 in cash; and 0.426 new Elis ordinary shares.
Based on the closing price of Elis's ordinary shares on 17 May 2017 of EUR 19.99, the deall values each Berendsen ordinary share at GBP 11.73 per share, and implies a total equity value for Berendsen of approximately GBP 2.05bn (USD 2.66bn).
The cash portion of Elis's Revised Proposal represents approximately 51% of Berendsen's closing share price on 17 May 2017.
Elis's Revised Proposal would provide Berendsen shareholders with an ownership stake in the combined group of approximately 35% on a fully diluted basis.
On 28 April 2017, Elis made a written cash and share proposal in private to Berendsen to acquire each Berendsen ordinary share for a combination of GBP 4.40 per share in cash and 0.411 new Elis ordinary shares.
At the time, the proposal valued each Berendsen ordinary share at GBP 11.00 per share (being a premium of approximately 31% to Berendsen's then trading price).
On 12 May 2017, the Berendsen Board rejected the Initial Proposal and declined to engage in discussions.
Then, on 16 May 2017, Elis approached Berendsen with the revised proposal, which, as of 15 May 2017, valued each Berendsen ordinary share at GBP 11.75 per share (being a premium of approximately 41% to Berendsen's then trading price).
Elis's revised proposal was rejected by the Berendsen board on the same day without any engagement.
Consequently, Elis has decided it is necessary for it to make public the revised proposal so that it can be considered by Berendsen's shareholders.
Elis said it is willing to move quickly and cooperatively to engage with Berendsen with a view to achieving a transaction for the benefit of Berendsen and Elis shareholders.
The French company provides linen and workwear rental, laundry, and hygiene and well-being services in Europe and Latin America.
Elis offers linen services, including aprons, dish towels, and glass cloths; hospitality linens; and beauty, spa, and fitness linens, as well as healthcare linens, among other services.
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|Publication:||M2 EquityBites (EQB)|
|Date:||May 22, 2017|
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