Aramark Files for IPO for Up to $100 Million
By Michael Calia
Aramark Holdings Corp. filed for an initial public offering for up to $100 million in stock as the food-services
company looks to pay down debt.
It will be the Philadelphia company's third IPO. The company's chairman, Joseph Neubauer, led a buyout in 1984 to
fight off a hostile takeover. Mr. Neubauer later helped bring the company back to public ownership in 2001 before
engineering its 2007 buyout with a group of private-equity firms.
The firms--Warburg Pincus LLC, Thomas H. Lee Partners LP, CCMP Capital Advisors LLC and Goldman Sach's GS Capital
Partners unit--each own about 21% of the company, according to Monday's filing. Along with Mr. Neubauer, who owns about
10% of Aramark, the firms paid about $6.3 billion and took on about $2 billion of debt in the buyout.
For the nine months ended June 28, the company posted a slight increase in revenue to $10.4 billion, but earnings
declined by a third compared with the year-ago period. Still, revenue and earnings have risen over the past three years,
the company said.
The Philadelphia company said the proceeds would repay a portion of outstanding loans due July 26, 2016, under its
senior secured credit facilities.
Aramark in July selected Goldman Sachs Group Inc. (GS), J.P. Morgan Chase & Co. (JPM), Credit Suisse Group AG (CS) and
Morgan Stanley (MS) to lead the offering.
Aramark said it intends to apply to list its shares on the New York Stock Exchange, but it did not specify a ticker
The company was founded in 1936 by Davre Davidson, who sold peanuts from the back of his Dodge, according to the
company's website. In addition to concessions, it providers uniforms and other services for stadiums, schools and
hospitals. Today it serves more than 150 premier sports facilities and more than 600 North American educational
institutions, the website says.
Write to Michael Calia at email@example.com
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