The value of the day in Paris – Derichebourg squeezes Elior – 05/31/2022 at 11:14

(AOF) – Derichebourg yields 2.25% to 7.6 euros while Elior yields 0.6% to 2,796 euros. The recycling specialist slightly increases the pressure on the collective restoration group. On May 19, to everyone’s surprise, the family group, which owned 4.9% of Elior, announced an agreement with the founders to control 19.6%. According to Derichebourg, this capital increase is part of a long-term logic. The group supports Elior’s strategy and, if it intends to ask for two seats on the board, the scenario of an OPA is ruled out. Last night, rebel.

In a statement sent to AMF, Derichebourg now reveals that it holds 20.57% of the capital and voting rights.

The group confirmed its intention to increase its stake “depending on market conditions and opportunities without, however, reaching 30% of the capital or voting rights.

Derichebourg’s intentions raise doubts in the market. Some analysts wonder what he’s doing in this mess. Elior recorded a half-year loss of 266 million euros, multiplied by 5 in a year. The company’s canteen operator is caught between rising costs and weakening demand, namely due to the installation of a dose of teleworking in the business world.

In a note published on May 20, Stifel may have provided part of the answer. While the brokerage has welcomed the medium-term outlook revealed by Elior in the wake of his semi-annual publication, the brokerage believes governance is its weakness. The upcoming appointment of a new managing director will also not solve all problems, believes the broker.

Perhaps Derichebourg has a new strategy to propose?

The design office is also concerned about Elior’s financial fragility. According to their estimates, the group would not in fact be able to honor their covenants next year. In this sense, Derichebourg’s support could be welcome.


key points

– Global operator of environmental services, created in 1956 under the name of Cie Française des Ferrailles;

– Turnover of 4.6 billion euros divided into 2 businesses: environmental services for 61% (collection and treatment of metals, aluminum and toxic waste) and multi-services (cleaning, industrial cleaning, public lighting, temporary solutions and human relations);

– Great weight of France (72% of revenues), followed by Europe (22%) and America (6%);

– Business model based on a dense network, vertical integration for the environment and, for multi-services, a digitalized offer and integrated services;

– Capital blocked by the Derichebourg family (41.5% of the capital and 57.8% of the voting rights), Daniel Derichebourg, CEO, chairing the 9-member Board of Directors;

– Financial strength with a net debt of 196 million euros against 703 million euros of equity.


– Growth strategy: environmental services: consolidate the leadership position in metals and increase the share of non-ferrous metals to 20-25%, implementation of the collection offer to municipalities, expected synergies of 21 M€ with the integration of Ecore -€ 1.3 billion in sales, 78 sites in Europe with an 80% recovery rate, including 98% for battery components;

– Innovation strategy not detailed by the company and integrated with environmental issues;

– Environmental strategy 2018/22 “concretely responsible”: reduction of emissions in 2 levers: recycling of metallic waste and energy through the recovery of shredding waste and agreement to deliver 19 MW of load shedding capacity with Total Flex, carbon offset , renewal of the transport fleet, use of StartMC&Alert Gasoil technologies and use of river transport (23.6% for raw materials) and rail transport (8%), implementation of recycling centers for cars and large appliances, launch of a “green loan”;

– Benefits of partnering with Saur on water-related services for local authorities;

– Balance between the 2 activities: short cycles in the environment, with strong price variations, and long cycles guaranteed by multi-year multi-service contracts;

– Continuation of establishments, reinforced in France and abroad – Germany, ie 11 million euros of additional revenue.


– Market driven by interest in raw materials from recycling and outsourcing to Multiservice customers;

– Double impact of the increase in raw material prices: favorable on scrap prices, negative on volume collection due to the drop in automobile production;

– After strong growth in operating profitability, confidence for the year 2021/2022 ended on September 30;

– Resumption of the dividend service of €0.32, ie a distribution fee of 30%.

Business services: road transport with labor shortages

A report published by Dares (Direction de l’Animation de la recherche, des Etudes et des Statistiques) in October 2020 pointed out that truck drivers were among the thirty most stressed professions in France in 2019. This tension is not a consequence and can even increase in the coming years. According to the OTRE (Organization of European Road Carriers), the needs could reach 100,000 jobs in the next five years. The phenomenon, which was mitigated during successive confinements, reappeared with the resumption of activity. It is partly linked to a lack of image and unattractive remuneration. Unfortunately, recent negotiations between the social partners to revalue the branch minima have not been successful.

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