Elior Group to Bring Its Stake in Elior North America to 92% and Secure New Partnership with Founder until 2022

PARIS--()--Regulatory News:

Elior Group (Paris:ELIOR), one of the world’s leading operators in the contracted food industry, has launched an offer to purchase for cash minority interests of Elior North America. 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.

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.”

About Elior Group
Founded in 1991, Elior Group has grown into one of the world's leading operators in the catering and support services industry, and has become a benchmark player in the business & industry, education, healthcare and travel markets. Now operating in 16 countries, the Group generated €6,422 million in revenue through 25,000 restaurants and points of sale in FY 2016-2017. Our 127,000 employees serve 5.5 million people on a daily basis, taking genuine care of each and every one by providing personalized catering and service solutions to ensure an innovative customer experience.

We place particular importance on corporate social responsibility and have been a member of the United Nations Global Compact since 2004, reaching the GC Advanced Level in 2015. The professional excellence of our teams as well as their unwavering commitment to quality and innovation and to providing best-in-class service is embodied in our corporate motto: "Time savored".

For further information please visit our website (http://www.eliorgroup.com) or follow us on Twitter (@Elior_Group)

Contacts

Elior Group
Press
Anne-Laure Sanguinetti, +33 (0)1 71 06 70 57
anne-laure.sanguinetti@eliorgroup.com
or
Investor relations
Marie de Scorbiac, +33 (0) 1 71 06 70 13
marie.descorbiac@eliorgroup.com

Contacts

Elior Group
Press
Anne-Laure Sanguinetti, +33 (0)1 71 06 70 57
anne-laure.sanguinetti@eliorgroup.com
or
Investor relations
Marie de Scorbiac, +33 (0) 1 71 06 70 13
marie.descorbiac@eliorgroup.com