Aramark’s $1.35 Billion Acquisition of Avendra

J.P. Morgan acted as lead financial adviser to Aramark, while Simpson Thacher & Bartlett LLP acted as legal counsel. For the AmeriPride transaction, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as lead financial advisers and Morgan, Lewis & Bockius LLP acted as legal counsel. Credit Suisse acted as the financial adviser to AmeriPride, while Dorsey & Whitney LLP acted as legal counsel. Goldman Sachs & Co. LLC acted as financial adviser and Latham & Watkins LLP provided legal counsel to Avendra, LLC. Fried Frank acted as counsel to Goldman Sachs as financial advisor to Avendra, LLC

Aramark and Avendra, LLC have entered into a definitive agreement under which Aramark will acquire Avendra for a purchase price of $1.35 billion, or a net purchase price of $1.05 billion after adjusting for the value of the anticipated tax benefits. Avendra is the leading hospitality procurement services provider in North America, managing nearly $5 billion in annual purchasing spend for over 650 companies at more than 8,500 locations, including over half of the Top 30 hotel chains. Avendra was founded in 2001 by five hospitality leaders: Marriott, Hyatt, Fairmont Hotels, ClubCorp and IHG.

The merger also creates opportunities for Aramark and Avendra to grow their customer base outside of their traditional industries. Additionally, Aramark anticipates annual procurement cost synergies of approximately $40 million, which it expects will be fully realized by the third fiscal year after closing.

The Simpson Thacher team includes Mario Ponce (Picture), Jakob Rendtorff and M. Faye Shin (M&A); Jennifer Hobbs, Eli Isak, Bassam Chain and Nick Brown (Banking and Credit); Joe Kaufman (Capital Markets); Gary Mandel and Drew Purcell (Tax); Jamin Koslowe, Alisa Tschorke and Jake Phillips (Executive Compensation and Employee Benefits); Peter Guryan, Ellen Frye and Daniel Owsley (Antitrust); Lori Lesser and Kate Stein (IP); and Adeeb Fadil and Noreen Lavan (Environmental).

The Fried Frank team was led by corporate partner Philip Richter and included corporate special counsel Brian Blitz.

 

Involved fees earner: Mario Ponce – Simpson Thacher & Bartlett; Jakob Rendtorff – Simpson Thacher & Bartlett; M. Shin – Simpson Thacher & Bartlett; Jennifer Hobbs – Simpson Thacher & Bartlett; Eli Isak – Simpson Thacher & Bartlett; Bassam Chain – Simpson Thacher & Bartlett; Joseph Kaufman – Simpson Thacher & Bartlett; Gary Mandel – Simpson Thacher & Bartlett; Jamin Koslowe – Simpson Thacher & Bartlett; Alisa Tschorke – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Ellen Frye – Simpson Thacher & Bartlett; Daniel Owsley – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Kate Stein – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Noreen Lavan – Simpson Thacher & Bartlett; Philip Richter – Fried Frank Harris Shriver & Jacobson; Brian Blitz – Fried Frank Harris Shriver & Jacobson;

Law Firms: Simpson Thacher & Bartlett; Fried Frank Harris Shriver & Jacobson;

Clients: Goldman, Sachs & Co.; Aramark Corporation;

 

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Author: Ambrogio Visconti