MINNEAPOLIS – (October 16, 2017) – Aramark (NYSE: ARMK) and Canadian Linen & Uniform Service Co. today announced that they have entered into a definitive agreement under which Aramark will acquire Canadian Linen for a purchase price of $1.0 billion, or a net purchase price of $850 million after adjusting for the value of the anticipated tax benefits. Canadian Linen is a leading uniform and linen rental and supply company in Canada and the U.S., with annual revenue of approximately $600 million.
“The merger of the two companies is a good fit and we’re anticipating a smooth transition for everyone,” said Bill Evans, President and CEO of Canadian Linen. “We believe Aramark shares similar values and culture and will ultimately take good care of our employees and customers. Both of companies are committed to providing the same exemplary service to our customers that they have come to expect and deserve.”
The combination of these two uniform services companies will create a leading uniform services provider with enhanced scale and capabilities, serving nearly 500,000 customers. The transaction will bolster Aramark's competitive position in the U.S., and immediately establish a strong position in Canada. Additionally, Aramark anticipates annual cost synergies of approximately $70 million, which it expects will be fully realized by the fourth fiscal year after closing.
“Canadian Linen is a highly-respected company with a tremendous legacy that will extend and complement Aramark’s uniforms business,” said Eric J. Foss, Aramark’s Chairman, President and CEO. “This merger will enable us to enhance our customer service experience, unlock improved efficiencies, develop new career opportunities for employees and deliver value for our shareholders. Our companies share a commitment to world-class service, and I look forward to welcoming Canadian Linen to the Aramark family.”
The Board of Directors at Aramark and Canadian Linen both unanimously approved the transaction. The merger is expected to close by the end of calendar year 2017, subject to customary closing conditions and regulatory approvals. Aramark will finance the transaction through the issuance of new debt, and has received fully committed financing.
About Canadian Linen and Uniform Service
Headquartered in Toronto, Ontario, Canadian Linen is recognized as the largest textile rental and supply company in Canada. Operating more than 115 production facilities and service centers throughout North America, the company provides linen and towels, uniforms, floor mats, restroom and cleaning products to nearly 150,000 customers through rental and purchase programs. As a true business partner, Canadian Linen helps customers improve their image while keeping facilities clean and employees safe. Innovation, personalized service and a dedication to company values has sustained the private, family-owned company for more than 125 years. Canadian Linen’s demonstrated commitment to customers, the community, employees and the environment has made them the People You Can Count On. Additional company information can be found at www.canadianlinen.com.
Aramark (NYSE: ARMK) proudly serves Fortune 500 companies, world champion sports teams, state-of-the-art healthcare providers, the world's leading educational institutions, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world. Their 270,000 team members deliver experiences that enrich and nourish millions of lives every day through innovative services in food, facilities management and uniforms. They operate their business with social responsibility, focusing on initiatives that support their diverse workforce, advance consumer health and wellness, protect their environment, and strengthen their communities. Aramark is recognized as one of the World's Most Admired Companies by FORTUNE as well as an employer of choice by the Human Rights Campaign and DiversityInc. Learn more at www.aramark.com.