France's Elis has bid for U.S. uniform supplier Vestis, sources say

Elis SA

05/09/2024 17:01

By Anirban Sen and Milana Vinn
       Sept 5 (Reuters) - French workplace supplies provider
Elis SA  ELIS.PA  has approached Vestis  VSTS.N , the former
uniform rentals business of Aramark  ARMK.N , with an
acquisition offer, according to people familiar with the matter.
    Elis first approached Vestis, which has a market value of
about $3.3 billion, including debt, a few weeks ago, the sources
said, requesting anonymity as the discussions are confidential.
The terms of the offer could not be immediately learned. 
    There is no certainty that Vestis will agree to a deal with
Elis, the sources said. Another suitor could also approach
Vestis, and it's possible that no deal with any party is
reached, the sources added. 
    Elis and Vestis did not immediately respond to requests for
comment. 
    Vestis  has become an acquisition target after its business
was hit by the loss of key customers. Its shares have shed about
35% of their value this year, trailing the S&P 500 Diversified
Support Services  .SPLRCDSSR  which has risen about 17% during
the same period. 
    Activist investor Corvex, which is led by hedge fund veteran
Keith Meister, took a stake in Vestis after it issued a profit
warning following its first-quarter results. In June, Vestis
appointed Meister to its board of directors.
    Earlier this year, Vestis was hit with a class action
lawsuit by a shareholder who alleged that the company made
misleading statements on its growth forecasts that led to a $1
billion valuation hit for shareholders. 
    Elis, which has a market value of about 9.2 billion euros 
($10.19 billion) including debt, is a provider of workplace
supplies, and offers maintenance services for uniforms. 

($1 = 0.9024 euros)

 (Reporting by Anirban Sen and Milana Vinn in New York; Editing
by Paritosh Bansal)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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