Creation of a new international leader in contract catering and multiservices

Today’s Elior Group Combined General Meeting has approved nearly unanimously (99,9%) the contribution to Elior of the Derichebourg Multiservices branch presided by Boris Derichebourg, to Elior Group of €452.9 million via the issuance of 80,156,782 new Elior Group shares, granting Derichebourg a 48.31% stake in Elior Group, including its existing shareholding. Derichebourg did not take part in the vote on this contribution and amount.

The General Meeting also approved the proposed amendments to the Articles of Association and Board member nominations in order to implement the governance agreement signed by Elior Group and Derichebourg on the same day, which seeks to ensure compliance with best governance standards in terms of long-term balance and independence.

Derichebourg is thereby creating a new international player in contract catering and multiservices.

This new French leader combines Derichebourg Multiservices’ operational experience and excellence with Elior Group’s extensive international customer portfolio. The new entity has a well-balanced profile thanks to the diversification resulting from multiservices activities, and an enhanced offering enabling it to provide all its customers with integrated offerings and complementary sales.

The new entity will offer a complete range of services to companies and public authorities in the areas of contract catering, soft facility management (cleaning, reception, green areas), hard facility management (energy efficiency, public lighting), security, as well as HR and temporary staffing services and subcontracting in aeronautics.

It will also create value for Derichebourg shareholders.

Derichebourg is refocusing on its environmental expertise through a strategic stake in this new leading international player. Derichebourg is one of the world leaders in scrap metal recycling and a key player in household waste collection, through its Derichebourg Environnement division (revenues of €4.3 billion in 2022, EBITDA of €471 million in 2022, and 6,000 employees). It also holds a 48.31% stake in Elior Group (€5.2 billion in 2022 pro forma revenues, €226 million in 2022 pro forma adjusted EBITDA¹ after taking into account €30 million in expected annual synergies by 2026, and 134,000 employees), an international leader in contract catering and multiservices.

Derichebourg held a Board of Directors meeting today, during which Abderrahmane El Aoufir has been appointed as Chief Executive Officer, replacing Daniel Derichebourg, who stays on as Chairman of the Board of Directors.

Daniel Derichebourg said:

"With regard to Derichebourg, I confidently hand the position of Chief Executive Officer to Abderrahmane El Aoufir, whose unrivaled knowledge of the Group will help to continue strengthening its position as an industry leader in terms of technical standards and profitability.

Regarding Elior Group, I’ve been looking forward to stepping into my role as head of this new leading player for a number of weeks, being on the ground with all the teams and customers, and helping to step up and sustain the Group’s return to profitable growth, which creates value for all stakeholders. Thanks to this major transaction, we are strengthening Elior’s strategic and financial profile, injecting with new expertise, growth opportunities and momentum. I’ll be meeting with the teams as from tomorrow and am eager to implement the principles that have guided my professional life from the outset: close interaction, customer focus, and profitability, in order to keep developing the Group and reduce its debt.    

It’s a historic day for both Derichebourg and Elior Group.” 

¹Excluding the Preferred Meals activities, and taking into account Multiservices 2022 EBITDA

Attachment

• Press release 04182023