The transaction would allow the Group to simplify its ownership structure by purchasing the shares of the minority shareholders not active in the business while reinforcing its partnership with Mike Bailey and Brian Poplin who will remain minority shareholders to lead the next phase of growth in the US until 2022.
Upon completion of the transaction, Elior Group’s stake in Elior North America will increase from 74% to 92% if all shares are tendered, with Mike Bailey and Brian Poplin retaining together 8% of interests in Elior North America. The transaction includes a cash payment of 115 million dollars. It is expected to be accretive on earnings per share as from 2019.
Commenting on the operation, 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. Our extended partnership with Mike Bailey will allow us to continue the build-up in the region and will contribute to our growth objective.”
“Since its inception the company has grown significantly to become a benchmark player in the US contract catering market,” said Mike Bailey. “I am looking forward to continuing the development of Elior North America.”