UK sponsors CVC, BC Partners to bid for French catering firm Elior

UK private equity firms CVC Capital Partners Ltd and BC Partners intend to make a joint bid for Elior SCA, valuing the French catering firm at EUR3.5bn (USD4.7bn), including debt, the Financial Times reported citing insiders.

Charterhouse Capital Partners LLP, which currently owns 62.3% of Elior, originally planned to sell only the French firm’s EUR2bn catering unit, but according to knowledgeable sources, it would choose to divest the entire business.

Elior was bought via a EUR2.5bn take-private transaction in 2006. Its co-founder Robert Zolade holds 24.7% of the company, Chequers Capital owns an interest of 7.8%, while several other investors hold the rest of the shares. Elior posted revenues of EUR4.2bn and EBITDA of EUR362m in the fiscal year to 30 September 2012.

Together with its advisors, the vendor is working with banks on a debt package of over EUR2bn (USD2.6bn) to back the purchase of the entire company, the sources said, adding that Charterhouse sought to draw interest from other bidders before launching a formal auction.

Swedish online gaming group Betsson acquires rival Cherryforetagen

Swedish online gaming firm Betsson AB (STO:BETS B) said it had sealed a SEK286m (USD45.4m/EUR33.8m) cash-and-stock deal to acquire domestic rival Cherryforetagen ab’s (STO:CHERB) online gaming sites Sverigeautomaten.com, Norgesautomaten.com and Danmarksautomaten.com.

The buyer will pay an initial consideration of SEK225m through the issue of new Betsson B shares and provide the remainder of the purchase price in cash after 12 months. The brands being acquired posted revenues of SEK168.2m in 2012.

Through the takeover, Betsson AB’s subsidiary in Malta, Betsson Malta ltd, which had so far been responsible for the operation of the Automaten sites, will assume responsibility for their external marketing as well.

The buyer said that the deal served its strategy to concentrate on the business-to-consumer model in its core markets in the Nordics. It expects the acquisition to bolster its earnings per share as of the second quarter of 2013.

As part of the agreement, Cherry will buy Cherrycasino.com from Betsson’s Maltese subsidiary for SEK1m.