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Food services firm Aramark to buy Avendra, AmeriPride in $2.35 billion deal

Published 16/10/2017, 06:20
© Reuters. Food services firm Aramark to buy Avendra, AmeriPride in $2.35 billion deal
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(Reuters) - Food services company Aramark (N:ARMK) said on Monday it would buy Avendra LLC, majority owned by Marriott International Inc (O:MAR), and uniform and linen supplier AmeriPride Services Inc for a total of $2.35 billion (1.77 billion pounds), before tax benefit adjustments.

Aramark said it would pay Avendra $1.35 billion, or $1.05 billion in net purchase price after adjusting for anticipated tax benefits.

AmeriPride's purchase price of $1 billion came in at $850 million after adjusting for anticipated tax benefits, Aramark said.

Separately, Marriott, which owns a 55 percent stake in Avendra, said it would receive about $650 million from the sale.

Aramark also added it expected cost synergies of about $40 million from the purchase of Avendra and about $70 million from AmeriPride.

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