Food services firm Aramark to buy Avendra, AmeriPride in $2.35 billion deal

FAN Editor
A Aramark company logo is seen at a facility in San Diego, California
A Aramark company logo is seen at a facility in San Diego, California December 11, 2013. REUTERS/Mike Blake

October 16, 2017

(Reuters) – Food services company Aramark <ARMK.N> said on Monday it would buy Avendra LLC, majority owned by Marriott International Inc <MAR.O>, and uniform and linen supplier AmeriPride Services Inc for a total of $2.35 billion, before tax benefit adjustments.

Aramark said it would pay Avendra $1.35 billion, or $1.05 billion in net purchase price after adjusting for anticipated tax benefits.

AmeriPride’s purchase price of $1 billion came in at $850 million after adjusting for anticipated tax benefits, Aramark said.

Separately, Marriott, which owns a 55 percent stake in Avendra, said it would receive about $650 million from the sale.

Aramark also added it expected cost synergies of about $40 million from the purchase of Avendra and about $70 million from AmeriPride.

(Reporting by Parikshit Mishra in Bengaluru; Editing by Amrutha Gayathri)

Leave a Reply

Next Post

South Korea police seek arrest warrant for Hanjin Group chief

FILE PHOTO: Korean Air Lines Chairman Cho Yang-ho arrives to testify at the second court hearing of his daughter Cho Hyun-ah, also known as Heather Cho, at the Seoul Western District court in Seoul January 30, 2015. REUTERS/Kim Hong-Ji/File Photo October 16, 2017 SEOUL (Reuters) – South Korean police are […]

You May Like