UK laundry and textile business Berendsen has agreed a deal in principle to be taken over by French rival Elis for £2.2bn.
Announcing the “possible” deal on Wednesday evening, the firms said they believe the tie-up would create a “strong pan-European leader in the textile, hygiene and facility services” sector.
The UK firm rejected an Elis bid valued at £2bn last month. The latest offer, valued at 1,261p per share, marks a 54 per cent premium on Berendsen’s three-month average share price.
Elis, which is yet to complete due dilligence, has until 15 June to announce a firm intention offer.
Credit Suisse is financial adviser to Berendsen on the deal, while JP Morgan Cazenove and HSBC are acting as financial advisers and joint corporate brokers.
Elis is being advised by bankers from Lazard, Zaoui and Deutsche Bank.