Elis SA Eyes Vestis Acquisition Amid Market Challenges

French workplace supplies provider Elis SA has made an acquisition offer to Vestis, the former uniform rentals business of Aramark. Vestis, currently valued at $3.3 billion including debt, has faced challenges such as the loss of key customers and a 35% drop in shares. Activist investor Corvex has taken a stake in Vestis, appointing Keith Meister to its board. The outcome of the deal remains uncertain.

French workplace supplies provider Elis SA has approached Vestis, the former uniform rentals business of Aramark, with an acquisition offer, according to people familiar with the matter.

Elis first approached Vestis, which has a market value of about $3.3 billion, including debt, a few weeks ago. The terms of the offer could not be immediately learned. There is no certainty that Vestis will agree to a deal with Elis, and another suitor could also approach Vestis.

Elis and Vestis did not immediately respond to requests for comment. Vestis has become an acquisition target after its business was hit by the loss of key customers, shedding about 35% of its value this year. Activist investor Corvex, led by Keith Meister, took a stake in Vestis and Meister joined its board. Earlier, Vestis faced a class action lawsuit over misleading growth forecasts.

(With inputs from agencies.)