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French PAI buys Elis from UK's BC Partners

PAI Management, the reincarnation of French buy-out firm Paribas Affaires Industrielles, has announced it is buying European textile rental firm Elis from UK buy-out firm BC Partners.

The transaction is yet another example of the gentle increase in secondary buy-out activity, reflecting the paucity of other exit channels at the moment.

Neither party has disclosed the terms of the deal but PAI is understood to have paid as much as E1.5bn for the firm. The sale had climaxed in an auction between a handful of private equity firms, showing just how competitive the buy-out market has become in Europe.

Dominique Megret, deputy head of PAI, said: ‘Elis is a great company, with an outstanding management team. We are confident in its growth potential and its future prospects. PAI is pleased to take over BC Partners sponsorship of Elis.'

Elis is the European leader in the textile rental sector, providing services like the cleaning of workwear and flat linen and the provision of beverage dispensers. It has annual revenues of around E800m and employs more than 11,000 people in Europe.

The volatility of public markets and the pronounced reticence of most potential corporate buyers have combined to make exit conditions extremely difficult in recent months. Secondary buy-outs, like the Elis sale, are becoming more common as a source of liquidity.

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