Aramark Acquires AmeriPride Uniform Company for $1B
It looks like hospitality supplier Aramark is looking to get in on the uniform game. According to the Star Tribune, the company announced that it has purchased Minnetonka, Minnesota-based uniform and linen supplier AmeriPride Services Inc. for $1 billion.
The sale is predicted to generate an additional $600 million in annual sales for Aramark, plus it will add about 115 production and service facilities across the U.S. and Canada. AmeriPride currently has 5,800 employees across North America.
The deal is expected to finalize by Dec. 31, at which point AmeriPride will become a wholly owned subsidiary of Aramark.
"AmeriPride is a highly respected company with a tremendous legacy that will extend and complement Aramark's uniforms business," Aramark President and CEO Eric J. Foss said in a statement. "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 AmeriPride to the Aramark family."
Once the deal has finalized, it could significantly increase the company's standing as a uniform services provider, plus it will establish a strong presence for the company in Canada.
For those who work in the promotional uniforms business, this deal might be something to watch out for. Aramark has a very large presence in the U.S. already, and a deal like this could make it a true competitor in the industry. The deal also proves uniforms continue to be a profitable source for growth.