Last Price$30.63NYSE Closing Price as of 7:00PM ET 6/30/22

Today's Change-0.18(0.58%)
Bid (Size)N/A (N/A)
Ask (Size)$41.70 (1)
Day Low / High$29.66 - 30.76
Volume2.1 M

Aramark Plans Spin-Off of Aramark Uniform Services Business Into Independent Publicly Traded Company

10:18AM ET 5/10/2022 MT Newswires
Aramark (ARMK) said Tuesday it plans to spin-off its Aramark Uniform Services business into an independent, publicly traded company by the end of its fiscal year 2023.

The company said it plans to structure the spin-off as tax-free to Aramark and its stockholders, subject to a favorable Internal Revenue Service ruling.

The move will optimize the strategic focus of both companies while providing greater flexibility for their respective capital structures and acquisition strategies, Aramark said.

John Zillmer will continue to serve as Aramark's chief executive following the completion of the proposed spin-off, while Tom Ondrof will remain as chief financial officer. Kim Scott will lead the independent Aramark Uniform Services entity as chief executive, with Rick Dillon serving as its chief financial officer, the company said.

The spin-off is subject to customary conditions including final approvals from Aramark's board and regulators.

Aramark Uniform Services, which offers full-service rental programs for uniforms and other supplies, plans to raise debt that would result in a one-time cash dividend to Aramark, which plans to use it to pay down its own outstanding debt, the company said.

Aramark shares gained 3.2% in recent Tuesday morning trading.

Price: 35.38, Change: +1.11, Percent Change: +3.24