Aramark completed the acquisition of AmeriPride Services, Inc. from Steiner family.
January 18, 2018
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Aramark (NYSE:ARMK) entered into definitive agreement to acquire AmeriPride Services, Inc. from Steiner family for $1 billion on October 13, 2017. Under the terms of the agreement, Aramark will pay $1 billion or a net purchase price of $850 million net of incremental cash tax benefits. Consideration is subject to certain adjustments and $5 million of the consideration will be held in escrow. In a related transaction, Aramark (NYSE:ARMK) entered into definitive agreement to acquire Avendra, LLC for $1.35 billion on October 16, 2017. Aramark will finance the transaction through the issuance of new debt and has received fully committed financing in the amount of $975 million. The transaction will terminate if not completed by April 30, 2018. AmeriPride Services, Inc. generated revenue of approximately $600 million in 2016. The transaction is subject to customary closing conditions and regulatory approvals including HSR Act, Competition Act and Canada Transportation Act clearance and delivery of ancillary documents. The transaction was unanimously approved by the Board of Directors of Aramark and AmeriPride Services, Inc. as well as shareholders of AmeriPride. On December 22, 2017, Federal Trade Commission approved the acquisition. The transaction is expected to close by the end of the calendar quarter of 2017.
Aramark anticipates annual cost synergies of approximately $70 million, which it expects will be fully realized by the fourth fiscal year after closing. The transaction will be accretive in the second fiscal year after closing and dilutive in 2018. Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as financial advisors to Aramark. Credit Suisse Securities (USA) LLC acted as financial advisor and Jay L. Swanson, Kim Severson and John Marsalek of Dorsey & Whitney LLP acted as legal advisors to AmeriPride Services, Inc. JPMorgan Chase Bank, N.A. acted as escrow agent. Richard B. Aldridge, Michael Baxter, Richard Umbrecht, Jacquelynne Hamilton, Crystal Fang, Adam Cole, Ali Good, Eric Stern, Amy Kelly, Patrick Rehfield, Christopher Amandes, Shevon Scarafile, Paul Gordon, Karen Butcher, Ross Friedman, Harry Robins Eric Marcuson Randy McGeorge, Summer Blackburn, Sariyah Buchanan, Saghi Fattahian, Erica Jaffe and Julia Sturniolo of Morgan, Lewis & Bockius LLP acted as a legal advisors to Aramark. Joe Takhmizdjian, Neil Hazan, and Geneviève Bergeron from Borden Ladner Gervais LLP acted as the legal advisor for AmeriPride Services, Inc. Alston & Bird LLP advised Credit Suisse Securities LLC as financial advisor to AmeriPride Services, Inc.
Aramark (NYSE:ARMK) completed the acquisition of AmeriPride Services, Inc. from Steiner family on January 19, 2018. Aramark used the net proceeds of $1.2 billion to finance the acquisition.
Aramark is a global provider of food and facilities services to education, healthcare, business and industry and sports, leisure, and corrections clients. The Company operates through two segments: Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International). The FSS United States segment consists of five sectors, which include business and industry, education, healthcare, sports, leisure and corrections and facilities and others. The Company provides food and beverage services, including catering and retail services, and facilities services, including plant operations and maintenance, custodial, housekeeping, landscaping and other services. The Company's core market is the United States, which is supplemented by an additional 18-country footprint.
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