Vestis Declines as Elis Halts Takeover Attempts

Shares of Vestis experienced a decline of over 3% on Friday following the announcement that Elis had terminated takeover discussions with the company.

Vestis has faced significant pressure this year, with a drop of 33%, and its shares have seen an additional decrease of more than 8% in the past week.

In a press release, the French company disclosed that it had ended talks with both Vestis and UniFirst as part of its efforts to enter the U.S. market. The decision was attributed to the inability to reach an agreement that aligned with the company’s financial discipline.

“Both discussions have been terminated, as neither would have allowed Elis to complete a transaction that adhered to the company’s strict financial standards,” Elis stated.

Despite the conclusion of these negotiations, Elis reaffirmed its commitment to pursuing organic growth and value-driven acquisitions. The company aims to focus on maintaining its leadership in current markets while also exploring opportunities in new markets.

“The Group’s operational expertise, growth potential, and its model based on circular economy principles will enable Elis to maintain its leadership in all the countries where it operates, while continuing to seek opportunities in new markets,” added the company.