Keeping employees fed and clothed is one mark of this company. ARAMARK is the world's #3 contract foodservice provider (behind Compass Group and Sodexo) and the #2 uniform supplier (behind Cintas) in the US. It offers corporate dining services and operates concessions at many sports arenas and other entertainment venues, while its ARAMARK Refreshment Services unit is a leading provider of vending and beverage services. The firm also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. Founded in 1959, ARAMARK is owned by an investment group led by chairman Joseph Neubauer.
The company operates through two primary business segments: food and support services, and uniform and career apparel. ARAMARK's foodservices is a large player in the events concessions segment with hospitality contracts serving more than 80 professional and college sports facilities along with more than 30 convention centers. Other units focus on schools, universities, healthcare facilities, and correctional facilities.
ARAMARK has operations throughout the US and about 20 other countries. International markets account for more than a quarter of the company's revenue.
Keen on international expansion, the company's 2011 purchase of MESA gave the healthcare unit of ARAMARK an extended reach into Europe, as MESA offers integrated repair and maintenance services to hospitals in a dozen European countries.
Sales & Marketing
Like its outsourcing rivals, ARAMARK competes primarily through bids to provide services to specific clients. It is generally engaged through long-term contracts that are renewed on a periodic basis. Most of ARAMARK's contracts allow the company to retain all revenue from its operations while paying a commission to the client; it also works under management-fee arrangements under which clients bear some of the financial risk for expenses. In addition, the company's uniform and apparel division also sells products (outerwear, safety gear, work wear) directly to customers.
Mergers & Acquisitions
The company is expanding its healthcare business, in particular, in 2011 through acquisitions. To expand its capabilities in hospital clinical technology and provide its customers with a broader menu of services, ARAMARK Healthcare in 2011 purchased Masterplan, which specializes in clinical technology management and medical equipment maintenance for a client base of some 230 hospitals. As part of the transaction, the company picked up Masterplan's sister company, medical equipment parts provider ReMedPar.
Also in 2011 the firm completed the purchase of the Filterfresh office coffee services business from Green Mountain Coffee Roasters for approximately $149 million. It did so to expand its food-and-beverage services and reach more office customers.
Net Revenue increased by about 5% in 2011 compared to the prior year. The growth was attributable to growth in the Education and Healthcare sectors, and the 2011 acquisition of Masterplan. In addition, its Food and Support Services segment conducted new business in Ireland, Germany, Spain, Chile, and China, and the company was positively impacted by the foreign currency translation. ARAMARK also reported a slight bump in its uniform rental business.
Net income increased by more than 225% in 2011, thanks to the profit growth in the Healthcare and Education sectors, operational efficiencies in its uniform rental business, and the positive impact of foreign currency translation, as well as a decrease in Interest and other financing costs due to lower average debt levels.
Cash inflow of about $52 million is attributable to the cash provided by financing activities due to sale of subsidiary shares to non-controlling interest. In addition, borrowings associated with the receivables facility increased.
Neubauer took the company private in 2007 for more than $8 billion, including the assumption of $2 billion in debt, with the backing of such investment firms as Goldman Sachs, CCMP Capital, Thomas H. Lee Partners, and Warburg Pincus. The deal marked the second such transaction for the company, having been taken private by Neubauer and a management group in the 1980s. – less
35 salaries reported
$11.49 per hour
19 salaries reported
$10.87 per hour
9 salaries reported
$11.23 per hour