Eurazeo and Crédit Agricole Assurances agree on the sale of 10% of Elis

May 31 2016

Eurazeo and Crédit Agricole Assurances have concluded on May 30, 2016 an agreement under which Crédit Agricole Assurances will acquire (via its subsidiary Predica) 11.4 million Elis shares (the “Company”) from Eurazeo, for a total amount of €192 million, representing 10.0% of the Company’s capital and 9.2% of the voting rights (the “Transaction”).

With this sale, Eurazeo reduces its stake in Elis while remaining a leading shareholder in the Company, which it has accompanied since 2007. From 2007 to 2015, Elis boosted its revenue by 68% to reach €1,415 million and its EBITDA by 63% to €446 million. The Transaction follows an IPO that took place in February 2015 and a recent accelerated book building with institutional investors in April 2016.

This transaction provides Crédit Agricole Assurances with a leading stake in a global French player and a leader in Europe and Latin America in the rental-maintenance of linen, work clothing and hygiene and wellbeing services. Elis is an integral part of the Crédit Agricole Assurances strategy to invest in companies that are market leaders with solid financial profiles, based on underlying operating sectors that are robust.

The Elis Supervisory Board will be asked to co-opt a member appointed on the proposal of Crédit Agricole Assurances in replacement of one of the four Elis Supervisory Board members appointed on the proposal of Eurazeo.

Elis welcomes a strategic shareholder whose purpose is to assist the Company over the long term. Xavier Martiré, Chairman of the Elis Executive Board, declared: “I am overjoyed that an investor of the caliber of Crédit Agricole Assurances has joined Eurazeo as a stakeholder in Elis, in order to foster the Company’s growth and development on a sustained basis.”

At the close of the Transaction, Legendre Holding 27 (“LH27”), a company controlled by Eurazeo, will hold 16.1% of the capital and 22.0% of the voting rights of Elis. Eurazeo will respectively hold 0.8% and 1.1% of the Company’s capital and voting rights directly, i.e. a combined holding of 16.9% of the capital and 23.1% of the voting rights.

Lastly, under the agreement with Eurazeo, pursuant to which no party is acting in concert, ECIP Elis will sell 437,897 shares, and will respectively hold 0.14% and 0.25% of the Company’s capital and voting rights at the Transaction’s closing.

In economic terms, Eurazeo will hold, directly and via LH27, 14.2% of the capital, compared with 22.6% prior to the Transaction.

This sale generates proceeds for Eurazeo of around €160 million, excluding the portion held by the co-investment vehicle Eurazeo Partners. On this transaction, Eurazeo realizes a multiple of nearly 1.7 times its investment.

Crédit Agricole Assurances will also commit to the remaining term of the 90-day lock-up period that expires on July 18, 2016 for the Elis shares granted by LH27 and Eurazeo at the time of the aforementioned accelerated book building. The Elis shares that continue to be held by Eurazeo and LH 27 will remain covered by this lock-up commitment, subject to the usual exceptions and exemptions stipulated under said commitment.   

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PRCAA-Eurazeo Elis 31-05-2016