ITALY. Autogrill has submitted a bid for Areas, the airport catering, railways and motorway arm of French group Elior, according to Reuters.
Earlier this month, it was reported that Elior was seeking bids for Areas before the end of January. Ten private equity funds including KKR, Lone Star and Blackstone were also reported to be considering bidding.
Preferred bidders for Areas will be chosen by March, according to a Reuters source whose comments were reported on Tuesday (22 January).
Areas has core earnings of about €200 million and earnings of 7.5-10 times earnings before tax, debt, depreciation and amortisation (EBITDA). This mean the deal could be worth between €1.5 billion and €2 billion.
Shares in Elior have more than halved since mid-2017 following a series of profit warnings. The firm’s market capitalisation has shrunk to below €2.5 billion.
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