On Monday, the food-services company Aramark said it would be spending a combined $2.35 billion to purchase AmeriPride Service, a uniform and linen service, and Avendra, a food and services supplier.
Marriot, which owns a 55% stake in Avendra, would receive about $650 million from the deal, and the stock is trading higher this morning. Marriott hares are up 0.51% on Monday after the sale was announced.
Shares of Aramark were up just slightly, 0.09%, to $42.37 after the announcement.
Aramark said it would spend $1 billion, or $850 million after adjusting for anticipated tax benefits, for AmeriPride. It said it would spend $1.35 billion, or $1.05 billion after tax benefits, for Avendra, of which Marriot is a majority owner.
The two companies "will significantly improve how we service our customers, while expanding our capabilities and scope in critical areas of our business,"Aramark CEO Eric Foss said in a news release.
The company is expecting $70 million in annual cost synergies from AmeriPride and $40 million in synergies with Avendra.
To read more about the deal, click here.
SEE ALSO: Aramark is buying 2 companies for a total of $2.35 billion
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