Search

×

Aramark acquires Avendra in US$1.35B deal

Food services company Aramark Corp. has acquired Avendra, the hospitality procurement services provider, for a purchase price of US$1.35 billion.

Avendra’s largest founding shareholder is Marriott International, which will receive about US$650 million for its 55% stake in the company. Marriott and other founding shareholders – Hyatt Hotels Corp., AccorHotels, ClubCorp and IHG – expect to receive a total of approximately US$1.18 billion in cash from the transaction.

“Combining Avendra’s powerful procurement capability with Aramark’s leading supply chain management expertise will bring increased buying scale and improved service levels to both Avendra’s and Aramark’s customers, while strengthening our industry reach and competitive positioning,” said Eric J. Foss, Aramark’s chairman, president and CEO.

Avendra manages nearly US$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. The company was founded 16 years ago by merging the procurement divisions of its founding shareholders.

According to a press release from Philadelphia-based Aramark, the merger creates opportunities to grow Avendra’s customer base. Also today, Aramark agreed to acquire AmeriPride Services Inc. for US$1.0 billion. AmeriPride is a uniform and linen rental and supply company in the U.S. and Canada.

 Wolfram Schaefer, Avendra’s president and CEO, said: “We are very enthusiastic about this evolution for Avendra. We think the combination of Avendra and Aramark, a company admired and respected around the world, will bring additional value to both our customers and supplier partners.”

As part of the agreement, Marriott, Hyatt, Accor and ClubCorp have agreed to commit to a five-year procurement agreement with Aramark and Avendra, according to a press release from Marriott.

Comment