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Aramark to take over AmeriPride
22 Oct '17
2 min read
Courtesy: AmeriPride
Aramark and AmeriPride Services have entered into a definitive agreement under which Aramark will take over AmeriPride for a purchase price of $1.0 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 US and Canada.
“AmeriPride is a highly-respected company with a tremendous legacy that will extend and complement Aramark’s uniforms business,” said Eric J Foss, Aramark’s chairman, president and CEO. “This merger will enable us to enhance our customer service experience, unlock improved efficiencies, develop new career opportunities for employees and deliver value for our shareholders. Our companies share a commitment to world-class service, and I look forward to welcoming AmeriPride to the Aramark family.”
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 US and immediately establish a strong position in Canada.
Additionally, Aramark anticipates annual cost synergies of approximately $70 million, which it expects will be fully realised by the fourth fiscal year after closing.
The board of directors of Aramark has unanimously approved the transaction. The transaction is expected to close by the end of calendar year 2017, subject to customary closing conditions and regulatory approvals. Aramark will finance the transactions through the issuance of new debt, and has received fully committed financing. (SV)
“AmeriPride is a highly-respected company with a tremendous legacy that will extend and complement Aramark’s uniforms business,” said Eric J Foss, Aramark’s chairman, president and CEO. “This merger will enable us to enhance our customer service experience, unlock improved efficiencies, develop new career opportunities for employees and deliver value for our shareholders. Our companies share a commitment to world-class service, and I look forward to welcoming AmeriPride to the Aramark family.”
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 US and immediately establish a strong position in Canada.
Additionally, Aramark anticipates annual cost synergies of approximately $70 million, which it expects will be fully realised by the fourth fiscal year after closing.
The board of directors of Aramark has unanimously approved the transaction. The transaction is expected to close by the end of calendar year 2017, subject to customary closing conditions and regulatory approvals. Aramark will finance the transactions through the issuance of new debt, and has received fully committed financing. (SV)
Fibre2Fashion News Desk – India
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