Elior to sell its concession catering brand Areas and raise €1bn: Report

20th December 2018 (Last Updated December 20th, 2018 12:00)

France-based catering group Elior is reportedly planning to raise €1bn ($1.147bn) through the sale of its concession catering brand Areas.

Elior to sell its concession catering brand Areas and raise €1bn: Report
Elior to sell its concession catering brand Areas. Credit: Rachel Park, Unsplash.

France-based catering group Elior is reportedly planning to raise €1bn ($1.147bn) through the sale of its concession catering brand Areas.

Several sources familiar with the matter told Reuters that the company is currently in talks with major banks such as Morgan Stanley.

A source close to the company noted that the catering group is expected to enter into talks with a private equity fund to sell Areas.

However, a Lagardère Travel Retail spokesperson told Reuters that the company has shown interest in Areas, for which, Elior has not yet taken a decision on bidding for it.

“Elior noted that it would take a decision regarding the sale in the first half of next year.”

Italian-based catering company Autogrill has shown interest in acquiring all of Areas business, while Cremonini is looking to buy the company’s My Chef assets in the country, according to another source.

Reuters also reported that one source familiar with the matter noted that Elior is currently in the process of finding potential buyers. It may also go for the idea of an initial public offering.

Elior noted that it would take a decision regarding the sale in the first half of next year.

Earlier this month, Elior reported full-year revenue up 4.2% to €6.7bn but earnings before interest, tax and amortisation (EBITA) were down by 16.7% to €285m.

In July this year, the company also made an offer to acquire a minority stake in Elior North America for $115m in cash payment. Elior also entered into a definitive agreement to acquire catering firm Bateman Community Living.