Philadelphia-based Aramark, a global leader in food, facilities management, and uniforms, announced Thursday that it will be acquiring Next Level Hospitality which provides culinary and environmental services in the senior living sector.
Next Level specializes in skilled nursing and rehabilitation facilities, serving hundreds of U.S. locations on the East Coast, Midwest, and Texas. The acquisition will allow Aramark to partner with a business committed to creating exceptional experiences for its clients while maintaining a scalable operating model.
“Next Level has built an impressive, fast-growing business that provides high quality services, led by a strong management team with a proven track record of execution,” Aramark CEO John Zillmer said. “This complementary acquisition extends our presence in the attractive, emerging senior living sector and reflects our highly selective M&A strategy. We look forward to welcoming the Next Level team to Aramark.”
Next Level generated approximately $160 million of revenue in the last twelve months ending March 31, 2021, and is expected to add to Aramark’s earnings by early fiscal 2022. The company will operate as a separate division within Aramark’s Healthcare business, using its own brand.
“We are excited to join Aramark – a place where I spent 18 years earlier in my career – and know is the ideal home for Next Level to leverage our combined capabilities and expertise,” Next Level CEO Dave Carpenter said. “We expect to capitalize on the extensive growth opportunities ahead to provide clients our differentiated culinary and environmental services.”
The deal is expected to close in Aramark’s third fiscal quarter, subject to customary closing conditions and approvals. Terms of the transaction were not disclosed. Aramark will hold its second fiscal quarter earnings call at 8:30 a.m. EDT on May 11.