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Avendra To Be Acquired By Aramark

Monday, October 16, 2017
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ROCKVILLE, MD—Avendra, the leading North American hospitalityprocurement services provider, today announced that its Board of Managersreached a binding agreement with Aramark Corporation (NYSE: ARMK) to acquirethe company for $1.35 billion. Avendra is owned by founding shareholdersMarriott International, Hyatt, Accor, ClubCorp and IHG.

Avendra was launched 16 years ago by merging theprocurement divisions of its founding shareholders. Today, Avendra is a leaderin hospitality procurement services, serving 8,500 hotels and other hospitalitybusinesses in the Americas providing a range of procurement and supply chainservices to its customers, including hotels, golf clubs, universities,multi-family housing buildings, as well as other segments.

Wolfram Schaefer, Avendra’s President and CEO, said: “Weare very enthusiastic about this evolution for Avendra. We think thecombination of Avendra and Aramark, a company admired and respected around theworld, will bring additional value to both our customers and supplier partners.Our process for creating valuable contracts and providing hospitality expertisewill only get stronger and our commitment to world-class customer service willcontinue to be the foundation for all we do.”

“Most importantly, I want to thank the Avendra team forcompeting day after day at the highest level, with the utmost integrity,”Schaefer continued. “Their unwavering efforts and continual focus on deliveringvalue to our customers and suppliers propelled us to this day.”

As part of the agreement, Marriott, Hyatt, Accor andClubCorp have agreed to commit to a 5-year procurement agreement with Aramarkand Avendra.

Leeny Oberg, Chairman of the Avendra Board and ExecutiveVice President and Chief Financial Officer of Marriott International, said,“Avendra has become very successful. From its beginnings serving foundingshareholders, Avendra has added non-founder customers who now make up themajority of company revenue. Avendra’s Board believed this was an appropriatetime to take Avendra to the next level by considering opportunities, includingsale of the company, to further increase the company’s purchasing power. Aspart of Aramark, we believe Avendra will continue its growth, driving greaterscale and value for the benefit of its customers.”

Eric Foss, Aramark’s Chairman, President and CEO,commented, “We’re excited to welcome Wolfram and the Avendra team to theAramark family. Combining Avendra’s powerful procurement capability withAramark’s leading supply chain management expertise will bring increased growth,buying scale, and improved service levels to both Avendra’s and Aramark’scustomers, while strengthening our industry reach and competitive positioning.”

The transaction is subject to the expiration ortermination of the waiting period under the Hart Scott Rodino AntitrustImprovements Act and satisfaction of other customary closing conditions. Theparties expect the transaction to close before year-end. Once the transactioncloses, Avendra will become an Aramark business unit headed up by Wolfram Schaefer.

Goldman Sachs & Co. LLC is serving as exclusivefinancial advisor and Latham & Watkins LLP provided legal counsel toAvendra. J.P. Morgan acted as lead financial adviser to Aramark, while SimpsonThacher & Bartlett LLP acted as legal counsel.

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