On Monday, the food-services company Aramark said it would be spending $US2.35 billion to purchase AmeriPride Service, a uniform and linen service, and Avendra, a food and services supplier.
Marriot, which owns a 55% stake in Avendra, would receive about $US650 million from the deal, and the stock is trading higher this morning. Marriott hares are up 0.51% on Monday after the sale was announced.
Shares of Aramark were up just slightly, .09%, to $US42.37 after the announcement.
Aramark said it would spend $US1 billion, or $US850 million after adjusting for anticipated tax benefits, for AmeriPride. It said it would spend $US1.35 billion, or $US1.05 billion after tax benefits, for Avendra, of which Marriot is a majority owner.
The two companies “will significantly improve how we service our customers, while expanding our capabilities and scope in critical areas of our business,” Aramark CEO Eric Foss said in a news release.
The company is expecting $US70 million in annual cost synergies from AmeriPride and $US40 million in synergies with Avendra.