Eurazeo's Elis lists with €1.5bn market cap

Ellie Pullen
11 February 2015

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Elis, the French laundry services provider backed by Eurazeo, has floated on the Euronext Paris with a market cap of €1.48bn.

Through the issuance of new shares, Elis raised the bulk of the proceeds from the IPO, taking home €700m. Meanwhile, Eurazeo – through the holding company Legendre Holding 27 – and company management sold €50m of shares.

The amount raised by the selling shareholders may increase to €162m, should the over-allotment option be exercised in full.

Shares were sold for €13 apiece. The company narrowed its price range to €13–16.5 per share last week, having previously announced an indicative price range of €12–19.

The flotation has resulted in a free-float of 50.6%, which may increase to 58.2% depending on the over-allotment option.

The company is now conditionally trading on the Euronext and will begin trading on 13 February under the ticker "ELIS". BNP Paribas, Deutsche Bank and Goldman Sachs International acted as global coordinators, as well as joint bookrunners alongside Crédit Agricole CIB, HSBC, Morgan Stanley and Societe Generale CIB.

Previous investment
Eurazeo acquired Elis in September 2007. The deal valued the company at €2.276bn, equivalent to 10.5x Elis's EBITDA at the time. Eurazeo provided an equity ticket of €393m, while ECIP – a co-investment vehicle for Eurazeo's LPs – invested €75m.

Eurazeo and ECIP, which comprised 20 institutional and private investors, collectively acquired a 98% stake in Elis, with ECIP's share being 16.3%.

Eurazeo acquired the company from PAI Partners and BC Partners, which had mandated JP Morgan and Rothschild to run an auction process.

Company
Founded in 1968 and headquartered in Paris, Elis is a provider of laundry services. It operates in the healthcare, hospitality, industrial and retail industries, providing laundry services for textiles, such as restaurant and hotel linen and work garments, as well as hygiene services for water fountains, coffee machines and medical waste management.

The company employs 18,500 staff and generated €1.225bn in revenues in 2013 with a 32.7% EBITDA margin.

People
Xavier Martiré is the CEO of Elis.