ARAMARK To Acquire Facility Services Business From ServiceMaster.Business Editors PHILADELPHIA--(BUSINESS WIRE)--Oct. 4, 2001 ARAMARK, a world leader in managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality , announced today that it has signed a definitive agreement to acquire ServiceMaster Management Services, the facility services business of ServiceMaster. Under the terms of the agreement, ARAMARK will pay $800 million in cash for ServiceMaster Management Services. The acquisition will enable ARAMARK to broaden its facility services base in the U.S. and internationally. "ServiceMaster and its management team are recognized as industry leaders," said Joseph Neubauer, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ARAMARK. "This acquisition will enable us to further strengthen our `Unlimited Partnerships' with an outstanding base of customers in the healthcare, education and business sectors. With ARAMARK's resources and expertise and ServiceMaster's experience and quality management team, we will be better positioned to provide broader solutions to all of our customers," he said. ServiceMaster Management Services, a leader in facility services with total managed volume of $1.9 billion and net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of nearly $1 billion annually, provides a complete range of services including custodial services, plant operations and management, groundskeeping Groundskeeping is the activity of tending an area of land for aesthetic or functional purposes; typically in an institutional setting. It includes mowing grass, trimming hedges, pulling weeds, planting flowers, etc. A person who engages in this work is called a groundskeeper. , technical support and food services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and to the healthcare, K-12, university and business customer sectors in the U.S. and Canada and, with licensees in 19 countries. The business employs 18,000 and manages 69,000 on behalf of its customers. Among its 1,450 clients are: Mt. Sinai Hospital in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Princeton University, Houston Independent School District The Houston Independent School District (HISD) is the largest public school system in Texas and the seventh-largest in the United States.[1] Houston ISD serves as a community school district for most of the city of Houston and several nearby and insular municipalities. , Iowa Health System, Delta Airlines, University of Virginia Medical Center and Hertz . The acquisition will enable ARAMARK to significantly expand its present base of facility services customers in the healthcare, educational, business, sports and entertainment and correctional sectors. Currently, ARAMARK manages facility services for approximately 325 clients, including Baylor University, Coors Field in Denver, EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , the Museum of Natural History in New York and Tulane University Medical Center. The two companies share a common philosophy of building long-term partnerships with their customers. Both companies, for example, have relationships with many customers that have spanned more than 20 years. As part of the agreement, ARAMARK will acquire ServiceMaster's corporate headquarters in suburban Chicago. ARAMARK plans to use the facilities as its midwestern regional headquarters. The transaction is subject to customary consents, approvals and conditions, including under the Hart-Scott-Rodino Act Hart-Scott-Rodino Act Often used in risk arbitrage. Antitrust act administered by U.S. Department of Justice and the FTC that requires an investor to file a form with the government before he acquires an economic interest in the lesser amount of $15 million or 15% of the . "The addition of ServiceMaster's international portfolio in facility services will enable us to increase our presence in key international markets," Mr. Neubauer added. Over the past two years, ARAMARK has made several other strategic acquisitions in the food and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services business -- including the food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. concessions and venue management businesses of Ogden Corporation, and the food service division of Wackenhut Corporation. ARAMARK has also formed additional strategic joint ventures in Ireland and the UK (with Campbell-Bewley) and in Chile (with Central de Restaurante). ARAMARK is a world leader in providing managed services - including food and support services, uniform and career apparel and childcare and early education programs. The company, headquartered in Philadelphia, has over 185,000 employees serving customers in 16 countries. Certain matters discussed in this press release are forward-looking statements based on the Company's current expectations as to prospective events about which the Company can give no firm assurance. These forward-looking statements are based on management's expectations as of the date hereof, and the Company does not undertake any responsibility to update any of these statements in the future. See the Company's cautionary statements relating to forward-looking statements filed with the Securities and Exchange Commission on Form S-1 by ARAMARK Worldwide Corporation, our subsidiary. |
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