(Boursier.com) — Elis finalized the acquisition of a century-old private group, a leader in the Mexican market.
Following the announcement made on March 9, the Mexican competition authority has approved the transaction and the acquisition will be consolidated from July 1.
The acquired group mainly supplies flat linen and workwear to customers in the Healthcare market. It has 11 production sites, 12 distribution centers and a clothing workshop. It employs over 2,600 people. Its 2021 revenue was 1780mMXN$ (i.e. 85 ME at the EUR/MXN$ exchange rate of June 2022) with an EBITDA margin of around 38% and an EBIT margin of around 18%. The activity is experiencing strong organic growth, driven by an accelerated development in the Mexican market, and the group should generate annual organic growth close to 10% in the coming years.
The initial amount of the investment linked to the acquisition of 100% of the shares (whose exchange rate was fixed in March at 23.6MXN$/EUR) is equivalent to a multiple of 5.0x 2021 EBITDA and 10. 7x EBIT 2021. The current management, very experienced, remains in place to support future growth; the transaction includes potential earn-outs at a lower multiple over the 2023-2025 period.
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