French-based catering group Elior has confirmed that it is in talks with European private equity firm PAI Partners relating to the potential sale of its concession catering arm of its subsidiary, Areas.
In December last year, Reuters reported that the French catering group is planning to raise €1bn ($1.13bn) through the sale of its concession catering brand Areas. The company had also been in talks with major banks such as Morgan Stanley.
In a statement regarding the sale, Elior said: “At this stage, any indication as to the result of these discussions is premature. Elior Group will not comment any further on this process and will communicate in due time, in accordance with regulations.”
According to sources familiar with the matter, the transaction may range between €1bn ($1.13bn) and €1.5bn ($1.70bn).
Elior, which has a market value of €2.2bn, was seeking to sell the assets for around €1.3bn, reported Reuters.
They also noted that PAI Partners is competing with American investment firm Lone Star and Swiss airline caterer Gategroup.
Elior, PAI, Carlyle, Lone Star and Gategroup declined to comment on the deal.
According to Elior, Areas is the one and only brand for the group’s concession catering activities.
The brand offers concession catering services to customers across airports, railways, motorways, and city and leisure domains in 13 countries globally.