Aramark plans $2.3 billion in new term loans for acquisitions

By Sara Rosenberg

New York, Oct. 16 – Aramark Services has received a commitment for up to $1.35 billion in term loans for its acquisition of Avendra LLC and a commitment for up to $975 million in term loans for its purchase of AmeriPride Services Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan Chase Bank is the lead bank on the loans for the Avendra transaction, and Goldman Sachs Lending Partners LLC and Morgan Stanley Senior Funding Inc. are the leads on the loans for the AmeriPride transaction.

Avendra, a Rockville, Md.-based hospitality procurement services provider, is being bought for $1.35 billion, or a net purchase price of $1.05 billion after adjusting for the value of the anticipated tax benefits.

AmeriPride, a Minnetonka, Minn.-based uniform and linen rental and supply company, is being acquired for $1 billion, or a net purchase price of $850 million after adjusting for the value of the anticipated tax benefits.

Closing on the transactions is expected by year-end, subject to customary conditions and regulatory approvals.

Leverage is expected to increase to mid-4 times net debt in fiscal year 2018 but through strong cash flows and aggressive debt repayment the company plans to bring net debt down to the range of 3 times to 3.5 times by 2020.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.