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Berendsen and Elis receive Germany, Poland takeover clearance

Staff Writer |
Berendsen and Elis said they have received financial conduct authority merger control clearances in Germany and Poland, relating to Elis' acquisition of Berendsen.

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The companies said based on the expected timetable of the transaction, it is not expected that merger control clearance in Austria will be required.

In June, Elis formally agreed a takeover offer with Berendsen, totalling GBP2.20 billion.

Elis made an offer for each Berendsen share of GBP5.40 in cash and 0.403 of a new Elis share, but Berendsen shareholders would also receive the 11.0 pence dividend "expected to be declared" by Berendsen for the six months to the end of June 2017.

Elis said the offer valued Berendsen shares at 1,250.0 pence each.

Earlier on Wednesday, Berendsen said its profit lowered in the first half of 2017 despite an increase in revenue and dividend, due to exceptional costs rising fourfold.

For the six months ended June 30, the FTSE 250-listed textile services company reported a pretax profit of GBP36.1 million, down from GBP51.7 million the year before, due to a fourfold increase in exceptional costs in the period to GBP16.9 million from GBP4.9 million.

The costs includes GBP9.0 million in expenses related to the acquisition of Berendsen by Elis agreed in June, and GBP7.9 million through the implementation of the Berendsen Excellence strategic initiatives, involving human resources, restructuring and redundancy.

Berendsen said revenue increased by 7.8% in the first half to GBP575.1 million from GBP533.5 million the prior year. On an underlying basis, revenue rose by 2.4%.

Segment-wise, Workwear, Facility and Healthcare saw revenue growth in the period, however Hospitality declined from the negative impact of the disposal of its direct sales business in the UK in August 2016.

Berendsen will pay an interim dividend of 11.0 pence per share, up 5.0% from 10.5p the year before.

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