Aramark Completes Purchase of Avendra for $1,350 Million
December 12, 2017 8:51am
Marriott International (NASDAQ: MAR) today announced that the owners of Avendra, LLC have completed the sale of Avendra to Aramark (NYSE: ARMK) for $1,350 million. After redemption of management participation rights, transaction costs, and repayment of Avendra’s outstanding debt, Avendra’s founding shareholders – Marriott, Hyatt, Accor, ClubCorp and IHG – received $1,201 million in cash proceeds from the transaction. Marriott received $659 million for its 55 percent interest in Avendra. In addition, in conjunction with the sale of Avendra, Marriott has entered into a 5-year procurement service agreement with Aramark on behalf of its managed hotel system in the Americas.
Leeny Oberg, Executive Vice President and Chief Financial Officer of Marriott International, said, “The success of Avendra demonstrates the tremendous power of procurement scale combined with great customer service. Together, Aramark and Avendra should further increase these benefits to Aramark’s customers, including Marriott and our hotel owners and franchisees.”
Marriott has committed to the owners of Marriott’s hotels that its proceeds from the sale of Avendra will be used for the benefit of the hotels in its system.
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 6,400 properties in 30 leading hotel brands spanning 126 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company also operates award-winning loyalty programs: Marriott Rewards®, which includes The Ritz-Carlton Rewards®, and Starwood Preferred Guest®. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.
Contact: Connie Kim
IHG, Along With Al-Futtaim, Open the Holiday Inn Dubai Festival City and Enter Agreement for New Staybridge Suites Dubai Festival City
IHG® Signs Agreement With Al Hokair Hospitality for Development of at Least 10 Holiday Inn Express® Hotels in Saudi Arabia
IHG Signs With Roquebrook for Hotel Indigo Gibraltar, an Adaptive Re-Use Project in Spain
Avendra Releases Findings from Lodging Industry F&B Study
Completing Conversion, Interstate Europe Opens Hotel Indigo Durham with Paul Borg as General Manager
IHG Signs With Watson Elite for Hotel Indigo Sydney Central Set to Open in 2021
Twenty Four Seven Hotels to Manage Holiday Inn Ontario Airport for New Owner Sunway Investment Group
In Partnership With Tanmiyat Real Estate, IHG to Rebrand Qatar's M Doha Hotel as Crowne Plaza Doha West Bay
Hyatt Appoints Stephen Ho as President - Greater China, Global Operations
IHG Acquires 51% Stake in Regent Hotels & Resorts Through Joint Venture With Formosa for $39 Million
Quinta del Golfo de Cortez Plans June 2018 Opening for Solaz, a Luxury Collection Resort, Los Cabos
Kyren Group and IHG to Reintroduce Crowne Plaza to Australia with Development of the Crowne Plaza® Adelaide
Research Reveals the Misconceptions Turning Young Brits Away From Hospitality Careers
Cleveland Marriott Downtown at Key Center Appoints Hartmut Ott as General Manager
PNB Merdeka Ventures Sdn. Berthed and Hyatt to Develop the First Park Hyatt hotel in Kuala Lumpur, Malaysia
DUR Hospitality, Via a Franchise Agreement with IHG, to Rebrand Riyadh Palace Hotel as Crowne Plaza Riyadh Palace
Investing Into Brands of the Future
Holiday Inn Express® Moscow – Sheremetyevo Airport Opens in Russia
Hyatt Enters Agreement with Promotora Comercial Abadan for 144-Key Hyatt Place Aguascalientes in Mexico
Anichi Development Breaks Ground on 120-Room Anichi Resort in Dominica Set to Open Late 2019
Please login or register to post a comment.