From HOTEL BUSINESS

Marriott International has revealed that the owners of Avendra LLC have reached a binding agreement to sell Avendra to Aramark for $1.35 million.

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—expect to receive approximately $1.18 million in cash proceeds from the transaction. Marriott expects to receive approximately $650 million for its 55% interest in Avendra.

Avendra was formed in 2001 through the merger of Marriott’s North American procurement division with the procurement businesses and purchasing power of the other founding shareholders. Since its founding, Avendra has grown exponentially and, today, more than half of Avendra’s revenues come from providing procurement and related services to non-founders, according to the company.

Leeny Oberg, chairman of the Avendra board and EVP and CFO of Marriott International, said, “We are delighted that Aramark, with its strong supply chain management business, has agreed to purchase Avendra, a significant leader in hospitality procurement services. Since its founding in 2001, Avendra has leveraged its tremendous scale by recommending quality products, negotiating favorable terms with vendors, and increasing efficiency of the procurement process. Today’s transaction should further increase procurement benefits for Marriott’s hotel owners and franchisees.”

For more on this story go to: https://www.hotelbusiness.com/new-owner-for-ritz-carlton-grand-cayman-avendra-is-sold-more/

IMAGE: Avendra logo