Aramark announced its plan to separate Aramark Uniform Services (AUS) into an independent, publicly traded company, according to a news release. The transaction is intended to be structured as a spin-off that is tax-free to Aramark and its stockholders. The Company currently expects the spin-off to occur by the end of fiscal 2023.
“Substantial improvements across the Company—including culture, organization, strategy, client, and customer service—and a program of selective, targeted investments, have enabled us to materially improve our growth trajectory,” said John Zillmer, Aramark’s Chief Executive Officer. “Kim Scott, who joined in October 2021 as President and Chief Executive Officer of AUS, and her team have developed a compelling strategic framework and vision for AUS. We believe that Aramark and AUS can best execute their respective value creating strategies operating as two independent, publicly traded companies.”
Given the enhancements to each of the two businesses over the past two years, the Company believes that both are now well-positioned to succeed independently, and the separation will enable superior outcomes for each business.
Aramark anticipates the benefits of separation will include:
- Enabling the executive leadership and boards of each stand-alone company to focus solely on its respective business
- Each business’ narrowed focus, and the ability to compensate employees with equity incentives linked solely to its own performance, enhances the ability to attract and retain strong employees
- Availability of equity linked solely to its distinct business will facilitate each company’s acquisition strategies
- Flexibility for optimizing capital structures and capital deployment priorities
- Ability for the investment community to value each business independently, which the Company expects will result in optimized total stockholder returns
To read the release in its entirety go here