Aramark brings Uniform Services Business into an Independently publicly traded company

Aramark CEO – John Zillmer – recently announced his company’s  intention to detach the Aramark Uniform Services (AUS) and Canadian Linen (CL) businesses and initiate an independent, publicly traded company.

The transaction is intended to be structured as a spin-off which will be materialized by the end of fiscal 2023. The company expects the two entities can best execute their respective value-creating strategies operating as two independent, publicly traded companies. The anticipated benefits of the segregation include:

  • Enabling the executive leadership and boards of each stand-alone company to focus on its respective business;
  • Each business’ narrowed focus, and the ability to compensate employees with equity incentives only linked to its own performance, increases the ability to attract and hold qualified and talented employees;
  • Availability of equity linked solely to its distinct business will facilitate each company’s acquisition strategies;
  • Flexibility in optimizing capital structures and capital deployment priorities;
  • Ability for the investment community to value each business independently, which – according to Aramark – will result in optimized total stockholder returns.