View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
December 12, 2017updated 09 Jan 2018 11:39am

American food services firm Aramark acquires Avendra for $1.35bn

American food services company Aramark has acquired Avendra, a North American hospitality procurement services firm, for approximately $1.35bn.

American food services company Aramark has acquired Avendra, a North American hospitality procurement services firm, for approximately $1.35bn.

Free Report
img

How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

Completion of the acquisition follows after the two companies entered into a definitive agreement in October this year.

Aramark expects cost synergies of nearly $40m from the purchase, which is expected to enhance purchasing capability and extends industry reach for both the parties.

Avendra, which is owned by Marriott International, Hyatt, Accor, ClubCorp and IHG, currently manages nearly $5bn in annual purchasing spend for more than 650 companies at over 8,500 locations, including over half of the Top 30 hotel chains.

Aramark chairman, president and CEO Eric J. Foss said: “By uniting the proven purchasing and supply chain management expertise of our two companies, we will create increased scale and improve service levels for our customers, strengthen our industry reach, provide new opportunities for our associates and drive sustained shareholder value.

“I welcome Avendra’s talented and experienced team to the Aramark family and look forward to the bright future we will build together.”

In addition, Marriott, Hyatt, Accor and ClubCorp have agreed to commit to a five-year procurement agreement with Aramark and Avendra.

Headquartered in Maryland, Avendra will continue to operate under the existing brand name.

Goldman Sachs and Latham & Watkins served as financial adviser and legal counsel, respectively, to Avendra.

Free Report
img

How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Verdict Food Service