ROCKVILLE, Md. — Aramark has reached a binding agreement to acquire hospitality-procurement services provider Avendra for $1.35 billion.
Avendra — owned by founding shareholders Marriott International, Hyatt, Accor, ClubCorp and IHG — was launched 16 years ago by merging the procurement divisions of its founding shareholders. Today, Avendra is a leader in hospitality procurement services, serving 8,500 hotels and other hospitality businesses in the Americas.
“We are very enthusiastic about this evolution for Avendra,” says Wolfram Schaefer, Avendra’s president and CEO. “We think the combination of Avendra and Aramark, a company admired and respected around the world, will bring additional value to both our customers and supplier partners. Our process for creating valuable contracts and providing hospitality expertise will only get stronger and our commitment to world-class customer service will continue to be the foundation for all we do.”
As part of the agreement, Marriott, Hyatt, Accor and ClubCorp have agreed to commit to a five-year procurement agreement with Aramark and Avendra.
“Avendra has become very successful. From its beginnings, serving founding shareholders, Avendra has added non-founder customers who now make up the majority of company revenue,” says Leeny Oberg, Chairman of the Avendra Board and EVP and CFO of Marriott International. “Avendra’s Board believed this was an appropriate time to take Avendra to the next level by considering opportunities, including sale of the company, to further increase the company’s purchasing power. As part of Aramark, we believe Avendra will continue its growth, driving greater scale and value for the benefit of its customers.”
The transaction is subject to the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and satisfaction of other customary closing conditions. The parties expect the transaction to close before year-end. Once the transaction closes, Avendra will become an Aramark business unit headed up by Wolfram Schaefer.