Elis shares drop after reported bid for US uniform supplier Vestis

Elis SA

06/09/2024 08:39

Sept 6 (Reuters) - Shares in Elis  ELIS.PA  fell 11% on
Friday after Reuters reported, citing sources, that the French
workplace supplies provider had approached Vestis  VSTS.N , the
former uniform rentals business of Aramark  ARMK.N , with an
acquisition offer.
    Vestis, valued at $3.3 billion on the stock market, has
become an acquisition target after recent underperformance due
to the loss of key customers.
    Midcap Partners analysts said the reported approach should
pressure the share price in the short term despite the
attractiveness of the U.S. market. 
    "This announcement echoes the Berendsen takeover bid in
2017, a target for which the group had raised its bids several
times and which the market considers to be overpaid, with Elis's
share price having only just returned to its level at the time,"
Midcap Partners wrote in a research note.

 (Reporting by Dagmarah Mackos in Gdansk; editing by Milla
Nissi)
 ((dagmarah.mackos@tr.com))