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Buyout-backed Aramark raises $725m through New York IPO

12 Dec 2013

chef cooking restaurantPrivate equity-backed food services provider Aramark has reportedly raised $725m from its IPO after its shares were priced at the lower end of the planned $20 to $23 range.

Warburg Pincus plans to remain the biggest stakeholder in the company following the IPO, which saw Aramark sell 28 million shares and other stockholders looking 8.3 million.

The company filed to raise $100m by listing its shares on the New York Stock Exchange in  September, although that figure was just a placeholder to help calculate fees.

Aramark was taken private by a consortium of investors including GS Capital Partners, Thomas H Lee Partners and Warburg Pincus in an $8.3bn deal in 2006.

Those investors each hold just over 21 per cent of the business, while CCMP Capital Investors and JP Morgan Partners own about 10.5 per cent each.

Warburg will be the biggest shareholder following the IPO despite seeing its stake drop from 21.5 per cent to 18.2 per cent.

The initial buyout included the assumption of about $2bn of debt, which had grown to more than $5.82bn at the end of September this year according to a filing with the US securities regulator.

Aramark said it planned to use capital raised from the IPO to pay back some of that debt.

The business had net profits of $102m last year on $13.5bn of revenues.

It provides food, facilities and uniform services to education, health, sports and leisure industries.

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