Information on the Target

In April 2023, the French company Derichebourg, specializing in waste management, logistics, and facility management, acquired a 48.3% stake in Elior Group, a prominent French organization that owns Serunion. This acquisition positions Elior as one of the world’s leading operators in collective catering and facility management.

Serunion, Spain's leader in collective catering, concluded its fiscal year on September 30 with a revenue of 518 million euros, reflecting a robust growth of 15.1% compared to the previous year and exceeding pre-pandemic figures of 486 million euros from 2019. Notably, all of Serunion's business divisions experienced significant revenue growth, with Serunion Educa (educational centers) increasing by 13.1%, Serunion B&I (businesses and institutions) by 14.3%, Serunion Salud (hospitals) by 10.1%, Serunion Vending (automatic distribution) by 26.4%, and Singularis (gourmet catering) by 36.5%.

Industry Overview in Spain

Spain's collective catering sector has shown remarkable resilience and growth post-pandemic, with a diverse range of services catering to educational institutions, hospitals, corporate clients, and vending needs. The industry's recovery trajectory reflects changing consumer preferences and an increasing demand for quality service.

The collective catering market in Spain is projected to expand further, driven by demographics, urbanization, and evolving lifestyles. This upward trend indicates potential for further investment in quality service delivery and operational efficiencies.

The facility management sector has also gained significant traction, characterized by the rising need for integrated services that encompass cleaning, maintenance, and logistical support. This sector plays a vital role in ensuring organizational effectiveness and efficiency across various industries, from healthcare institutions to educational entities.

Moreover, as organizations increasingly recognize the importance of sustainability and environmental responsibility, the demand for specialized services in waste management and resource optimization is likely to surge, paving the way for enhanced operations within the catering and facility management industries.

The Rationale Behind the Deal

Derichebourg’s investment in Elior is strategic and aimed at creating a global leader in collective catering and facility management. The acquisition enables Elior to enhance its service offerings and leverage Derichebourg's expertise in facility management.

This collaboration presents an opportunity for Serunion to grow in the Spanish market, expanding its presence not only within collective catering but across the facility services landscape as well, bolstering its competitive edge in the industry.

Information About the Investor

Derichebourg is a well-established player in the global waste management, logistics, and facility management sectors. With its extensive experience and innovative approach, the company has been a leader in integrating sustainable practices within its operations, making it a strategic investor.

Under the leadership of Daniel Derichebourg, who now serves as both President and CEO of Elior Group, the company is poised for growth and strategic alignment with its operational goals, enhancing its capabilities to meet market demands.

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This investment by Derichebourg in Elior Group represents a significant opportunity for growth within the collective catering and facility management sectors. By combining resources and expertise, both companies can enhance service delivery, operational performance, and overall market presence.

Given the positive revenue growth posted by Serunion and the projected expansion of the collective catering market in Spain, this acquisition appears to be a sound investment that aligns with industry trends. It places Serunion in a favorable position to attract new clients and expand its service offerings.

Furthermore, the partnership can drive innovations and improvements in sustainable practices, which are becoming increasingly important to clients and consumers alike. By investing in high-quality service standards, the collaboration stands to benefit all stakeholders involved.

Ultimately, the synergy created between Derichebourg and Elior Group underscores the potential for a thriving entity that can adapt and excel in the dynamic landscape of catering and facility management services.

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