Food Service
Aramark Buys Avendra And AmeriPride In Deals Totaling $2.35 Billion

Posted On: 10/18/2017

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PHILADELPHIA -- Contract foodservice giant Aramark has agreed to buy Avendra LLC, a hospitality procurement service majority owned by Marriott International, and uniform and linen supplier AmeriPride in deals totaling $2.35 billion.

Aramark, headquartered in Philadelphia, said it would pay Rockville, MD-based Avendra $1.35 billion. Marriott, which owns a 55% stake in Avendra, said it would receive about $650 million from the sale. 

Avendra manages purchases for 650 hospitality firms at more than 8,500 locations. It was founded in 2001 by Marriott, Hyatt, Fairmont Hotels, ClubCorp and IHG.

Aramark's purchase price for Minnetonka, MN-based AmeriPride's is $1 billion. AmeriPride Services Inc., which has annual revenue of about $600 million, will significantly increase the size of Aramark's uniform business. 

Aramark said it expects cost synergies of about $40 million from the purchase of Avendra and about $70 million from AmeriPride.

Aramark expects the combined uniform businesses to result in drivers having more customers on their routes among other cost-cutting benefits. Additionally, two-thirds of Avendra's purchases are for food and beverages, which Aramark said would increase its leverage to negotiate lower prices.