Marriott International said owners of Avendra, LLC have completed the sale of Avendra to Aramark for $1,350 million.
Marriott said in a statement that after redemption of management participation rights, transaction costs, and repayment of Avendra’s outstanding debt, Avendra’s founding shareholders – Marriott, Hyatt, Accor, ClubCorp and IHG – received $1,201 million in cash proceeds from the transaction.
Marriott received $659 million for its 55 percent interest in Avendra. In addition, in conjunction with the sale of Avendra, Marriott has entered into a 5-year procurement service agreement with Aramark on behalf of its managed hotel system in the Americas.
Leeny Oberg, Executive Vice President and Chief Financial Officer of Marriott International, said, “The success of Avendra demonstrates the tremendous power of procurement scale combined with great customer service. Together, Aramark and Avendra should further increase these benefits to Aramark’s customers, including Marriott and our hotel owners and franchisees.”
Marriott has committed to the owners of Marriott’s hotels that its proceeds from the sale of Avendra will be used for the benefit of the hotels in its system.