October 04, 2024 13:34 GMT
CONSUMER CYCLICALS: Elis (ELISGP; Ba1 Pos/BBB-) M&A talks called off
CONSUMER CYCLICALS
Equities celebrating (+10% - potential target Vestis ran half the margin with no headline growth.
We are bit surprised, it seemed 'invested' in inorganically entering the US - but it is reassuring to see it has stuck to its limits on price. The other two national players in the US not explicitly mentioned today/in leaks is Cintas (too large at $85b EV) and private Alsco (we don't have financials).
We would not rule out bolt-on M&A but it does seem like a large transaction to enter US will take a back-seat; "Elis therefore remains focused on its strategy combining organic growth and value-creating acquisitions".
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