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 became a public company again in 2013.
ARAMARK was previously a public company from 2001 - 2007. It returned to the public market in 2013, raising $725 million in its IPO. It will use the proceeds to pay down debt.
ARAMARK has operations throughout the US and more than 20 other countries. International markets account for more than a quarter of the company's revenue. The company has a diverse customer base, serving customers in 45 states, Puerto Rico, and one Canadian province from more than 200 service location and distribution centers across the US and one service center in Ontario, Canada.
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.
Sales and Marketing
ARAMARK serves businesses of all sizes in many different industries. 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.
The company uses partnership agreements to grow its business. In 2013 ARAMARK Healthcare Technologies entered into a strategic alliance with AUXILIO to offer its hospital partners an option to manage all print-related expenses related to the production of critical documents including services, supplies, equipment, legacy service agreements, parts, finance charges, and labor documentation.
Back in 2012 the Cleveland Browns partnered with ARAMARK to provide premium dining services at Cleveland Browns Stadium. Together, the Browns and ARAMARK launched the Cleveland Browns Hospitality Group.
Mergers and 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.
Chairman Joseph 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.