Under a memorandum of understanding (MoU) signed by the groups, Elior would acquire DMS in exchange for new Elior shares issued to Derichebourg at 5.65 euros per share, representing a premium of 119%, and increasing Derichebourg ownership to 48.4%.

The acquisition has significant potential value creation with at least 30 million euros in run-rate EBITDA synergies and a double-digit positive impact on EPS as soon as FY 2024, Elior said in a statement.

The transaction is subject to Elior Group shareholders' approval at an extraordinary general meeting during April-May of next year.

($1 = 0.9441 euros)

(Reporting by Federica Mileo; Editing by Tom Hogue)