Real EstateAcquisitionsAvendra to be Acquired by Aramark

Avendra to be Acquired by Aramark

Rockville, Md.–Avendra, a North American hospitality procurement services provider, announced that its board of managers reached a binding agreement with Aramark Corporation to sell the company to Aramark for $1.35 billion. Avendra is owned by founding shareholders Marriott International, Hyatt, Accor, ClubCorp, and IHG. Marriott expects to receive approximately $650 million for its 55 percent interest in Avendra. The transaction is expected to close before the year ends.

Avendra launched 16 years ago after merging the procurement divisions of its founding shareholders. Today, the company serves 8,500 hotels and other hospitality businesses in the Americas, providing a range of procurement and supply chain services to its customers, including hotels, golf clubs, universities, multi-family housing buildings, as well as other segments.

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. Our process for creating valuable contracts and providing hospitality expertise will only get stronger and our commitment to world-class customer service will continue to be the foundation for all we do.”

“Most importantly, I want to thank the Avendra team for competing day after day at the highest level, with the utmost integrity,” Schaefer continued. “Their unwavering efforts and continual focus on delivering value to our customers and suppliers propelled us to this day.”

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

Leeny Oberg, chairman of the Avendra Board and executive vice president and chief financial officer of Marriott International, said, “Avendra has become very successful. From its beginnings serving founding shareholders, Avendra has added non-founder customers who now make up the majority of company revenue. Avendra’s Board believed this was an appropriate time to take Avendra to the next level by considering opportunities, including sale of the company, to further increase the company’s purchasing power. As part of Aramark, we believe Avendra will continue its growth, driving greater scale and value for the benefit of its customers.”

Eric Foss, Aramark’s chairman, president, and CEO, commented, “We’re excited to welcome Wolfram and the Avendra team to the Aramark family. Combining Avendra’s powerful procurement capability with Aramark’s leading supply chain management expertise will bring increased growth, buying scale, and improved service levels to both Avendra’s and Aramark’s customers, while strengthening our industry reach and competitive positioning.”

The transaction is subject to the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and satisfaction of other customary closing conditions. The parties expect the transaction to close before year-end. Once the transaction closes, Avendra will become an Aramark business unit headed up by Wolfram Schaefer.

Goldman Sachs & Co. LLC is serving as the exclusive financial advisor and Latham & Watkins LLP provided legal counsel to Avendra. J.P. Morgan acted as lead financial adviser to Aramark, while Simpson Thacher & Bartlett LLP acted as legal counsel.