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
Hyatt and Jinmao Group Unveil 305-Room Jinmao Hotel Lijiang Joining The Unbound Collection in China Following Rebranding From Grand Hyatt
Ratanakorn Asset and IHG Sign Agreement for Development of Eight New Properties in Thailand’s Key Resort Destinations
General Manager Edmond Martinez Welcomes Guests to New 100-Suite Residence Inn by Marriott in Denver, Colorado
Crescent Hotels & Resorts Opens 134-Suite Crowne Plaza® – Farmington Hills Following Renovation and Rebranding
InterContinental® Debuts in Bulgaria With Opening of 194-Room InterContinental Sofia
Marriott and Simon Expand Relationship With Plans to Open at Least Five Additional Hotels at Simon Shopping Centers
Summer In The City: Marriott International Study Finds Cities Top the List for Vacation Plans
Lingerfelt CommonWealth Partners to Purchase and Rebrand Virginia Beach Resort Hotel & Conference Center With $44 Million Capital Investment
Owned and Managed by Daly Hotel Management, New Fairfield Inn & Suites by Marriott Opens in Athens, Tennessee
IHG Expands in Western China With Signing of 10 New Deals Under 7 Brands
Marriott Leads All Franchise Companies for Largest U.S. Construction Pipeline
Marshall Hotels & Resorts Takes Over Management of 63-Room Hotel Indigo in Birmingham, Alabama
Owned by Inns of Ocean City and Managed by Palmer-Gosnell Hospitality, Residence Inn by Marriott Opens in Ocean City, Maryland
IHG to Rebrand and Operate 13 UK Hotels Through Agreement With Foncière des Régions Following Acquisition From Starwood Capital Group
Barnes Capital and IHG® to Develop a 150-Room Holiday Inn in Melbourne’s Coburg Suburb
IHG Signs With Focus Ventures to Develop Dual-Branded Hotel Indigo and Holiday Inn in the Heart of Melbourne's Retail District
The Juggle is Real for Today’s Travel Managers
MDR Hotels and R.D. Olson Construction Break Ground on New Build Dual-Brand Marriott Hotel in Marina del Rey
Aimbridge Hospitailty Completes $15 Million Renovation of 468-Room Hyatt Regency Schaumburg
In Partnership with Arabia Hotels, IHG Signs for Two New Build Hotels in Giza, Egypt
Please login or register to post a comment.