Shooping spree: Aramark buys Avendra for $1.35 billion, AmeriPride Services for $1 billion
Staff Writer |
Aramark announced that it entered into definitive agreements to acquire two companies.
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That will deliver growth and strengthen the company’s competitive position across its portfolio of Food, Facilities and Uniforms businesses.
Aramark and Avendra have entered into a definitive agreement under which Aramark will acquire Avendra for a purchase price of $1.35 billion, or a net purchase price of $1.05 billion after adjusting for the value of the anticipated tax benefits.
Avendra is the leading hospitality procurement services provider in North America, managing nearly $5 billion in annual purchasing spend for over 650 companies at more than 8,500 locations, including over half of the Top 30 hotel chains.
Avendra was founded in 2001 by five hospitality leaders: Marriott, Hyatt, Fairmont Hotels, ClubCorp and IHG.
The merger also creates opportunities for Aramark and Avendra to grow their customer base outside of their traditional industries.
Additionally, Aramark anticipates annual procurement cost synergies of approximately $40 million, which it expects will be fully realized by the third fiscal year after closing.
Aramark and AmeriPride Services also announced that they have entered into a definitive agreement under which Aramark will acquire AmeriPride for a purchase price of $1 billion, or a net purchase price of $850 million after adjusting for the value of the anticipated tax benefits.
AmeriPride is a leading uniform and linen rental and supply company in the U.S. and Canada, with annual revenue of approximately $600 million.
The combination of these two uniform services companies will create a leading uniform services provider with enhanced scale and capabilities, serving nearly 500,000 customers.
The transaction will bolster Aramark's competitive position in the U.S., and immediately establish a strong position in Canada.
Additionally, Aramark anticipates annual cost synergies of approximately $70 million, which it expects will be fully realized by the fourth fiscal year after closing. ■