PHILADELPHIA — Aramark reports it is planning to separate Aramark Uniform Services (AUS) into an independent, publicly traded company.
The transaction is intended to be structured as a spin-off that is tax-free for Aramark and its stockholders. The company currently expects the spin-off to occur by the end of fiscal 2023.
“Substantial improvements across the company—including culture, organization, strategy, client, and customer service—and a program of selective, targeted investments, have enabled us to materially improve our growth trajectory,” says John Zillmer, Aramark’s chief executive officer.
“Kim Scott, who joined in October 2021 as president and chief executive officer of AUS, and her team have developed a compelling strategic framework and vision for AUS.
“We believe that Aramark and AUS can best execute their respective value-creating strategies operating as two independent, publicly traded companies.”
The company says Aramark Uniform Services provides its customers with full-service rental programs focused on uniforms, floor mats, towels, linens, managed restroom and first aid services.
“I am honored to lead the Aramark Uniform Services team forward, and we are all excited to fully develop the great opportunities before us,” Scott says. “Since October, our team has developed a plan to deliver a step change increase in organic revenue growth and margin.
“By capitalizing on our recent investments, and modernizing our approach to customer relationship management, we expect to substantially increase the performance of our business.
“I am especially energized by our amazing frontline team who are committed, tenured, and passionate about delivering an outstanding experience for our customers. We are grateful to all of our teammates for all they have done and will continue to do to ensure we reach our full potential as a company.”
The transaction is subject to certain customary conditions, including final approval of the Aramark Board of Directors, receipt of a favorable opinion and Internal Revenue Service ruling with respect to the tax-free nature of the transaction, and the receipt of other regulatory approvals.
Goldman, Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors. Wachtell, Lipton, Rosen and Katz is serving as legal counsel.
Scott Named President, CEO of Aramark Uniform Services, Oct. 25, 2021
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