Aramark is buying 2 companies for a total of $2.35 billion

(Reuters) – Food services company
Aramark said on Monday it would buy Avendra LLC, majority owned by Marriott International Inc, and uniform and linen supplier AmeriPride Services Inc for a total of $US2.35 billion, before tax benefit adjustments.

Aramark said it would pay Avendra $US1.35 billion, or $US1.05 billion in net purchase price after adjusting for anticipated tax benefits.

AmeriPride’s purchase price of $US1 billion came in at $US850 million after adjusting for anticipated tax benefits, Aramark said.

Separately, Marriott, which owns a 55 per cent stake in Avendra, said it would receive about $US650 million from the sale.

Aramark also added it expected cost synergies of about $US40 million from the purchase of Avendra and about $US70 million from AmeriPride. (Reporting by Parikshit Mishra in Bengaluru; Editing by Amrutha Gayathri)

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.