Aramark Holdings Files for $100 Million Food-Services IPO
Aramark Holdings Corp., the provider of institutional food and facilities services in 22 countries, filed to raise $100 million in an initial public offering.
Goldman Sachs Group Inc., JPMorgan Chase & Co., Credit Suisse Group AG and Morgan Stanley are leading the IPO, according to a regulatory filing today. The amount sought is a placeholder used to calculate fees and may change. Philadelphia-based Aramark applied to list on the New York Stock Exchange.
The IPO paves the way for Aramark’s owners, including Chairman Joseph Neubauer, Goldman Sachs, Thomas H. Lee Partners LP and Warburg Pincus LLC, to begin exiting their investment after a 2007 buyout. U.S. stocks have rallied this year to a record, prompting private-equity firms to begin liquidating their stakes in portfolio companies from Quintiles Transnational Holdings Inc. to SeaWorld Entertainment Inc.
Private-equity owners of Aramark invested more than $1.7 billion in the company’s stock in the buyout, filings show, while Neubauer contributed $200 million. Some existing holders may sell stock in the IPO, the company’s filing today showed, without specifying.
Aramark will use its proceeds from the sale to repay some debt, according to the filing. The company had $6.2 billion of total debt at the end of June and about $98 million of cash, the filing shows.
Goldman Sachs, Thomas H. Lee and Warburg Pincus each own about 21 percent of Aramark’s common stock, while JPMorgan and CCMP Capital Investors each own about 10.5 percent, company filings show. Neubauer owns 10.2 percent.
Sales at Aramark, which totaled $13.5 billion in the 12 months through September 2012, were little changed from four years earlier, filings show. The company booked about $13 billion of sales in the twelve months through September 2011.
Earnings before interest, taxes, depreciation and amortization, adjusted to exclude charges related to the 2007 acquisition, were $885 million in the nine months through June of this year, up 7 percent from $826 million in the year-earlier period.
Aramark serves more than 500 million meals a year to students at schools and universities and has operated at least 15 Olympic Games since 1968. The company was taken private more a buyout led by Neubauer. The sale, valued at about $8 billion including debt, was completed in January 2007, data compiled by Bloomberg show.
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