PARIS (Reuters) - Elior, Europe’s third-largest catering group, said it was considering a separation of some of concessions businesses, as part of a broader strategy to boost growth in a competitive market which saw the company issue a profit warning in May.
The French company said it was reviewing options for concession catering activities grouped in its so-called “Areas” arm, which handles catering in areas such as airports and railways.
“The review, which could lead to the separation of “Areas” from the rest of the group, is intended to accelerate the development of each of its activities and create value for Elior Group shareholders,” said Elior in a statement.
Elior, which competes with Sodexo and Compass, has issued several profit warnings over the last year, but the company said on Tuesday that it was sticking to its current financial targets.
Reporting by Sudip Kar-Gupta, Editing by Sherry Jacob-Phillips