Spotless assets targeted by Delaware North – report

Provided exclusively by Mergermarket

Delaware North, the New York-based group, is said to be targeting assets owned by Spotless [ASX: SPO], The Australian reported. According to the report in the paper’s Dataroom column, which did not cite sources, Delaware North is not large enough to buy Spotless in its entirety, but it may be interested in its catering division.

The item noted that Downer EDI [ASX: DOW] has offered to buy Spotless for AUD 1.15 per share (USD 84c) and could sell the catering division to Delaware North at a later date. The catering operations may not interest Downer, an engineering services business.

The report noted that Delaware North was mentioned as a possible buyer for Spotless one year ago. ISS [CPH: ISS] and Sodexo [EPA: SW] were also mentioned as potential suitors at that time, the newspaper said.

The item noted that Spotless may be continuing to market certain divisions to potential buyers. The article said that Spotless has pitched its laundry business to potential suitors, such as Champ Private Equity, and its cleaning unit and contracts operations have been on the market.

Yesterday, Downer extended its offer for Spotless to 14 June, the item noted. Downer, which now owns just over 21% of Spotless, is advised by UBS.

Citi is advising Spotless.

As seen in the mergermarket newsletter on 22/05/2017

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