Aramark, a food, facilities, and uniform services provider, plans to separate Aramark Uniform Services (AUS) into an independent, publicly traded company by the end of fiscal year 2023.
Aramark Uniform Services provides customers in the United States and Canada with full-service rental programs for uniforms, linens, towels, floor mats, and managed restroom and first-aid services.
AUS had revenue totaling $2.6 billion before the COVID pandemic. Last year, it created nearly $250 million in new client accounts.
Spinning off the business will allow Aramark’s executive leadership and board of directors for each stand-alone company to focus solely on one business and ensure equity linked to each business will facilitate each company’s acquisition strategies. Employees will be compensated with equity incentives linked to performance. The spinoff also gives Aramark flexibility for optimizing capital structures and capital deployment priorities.
Kim Scott will serve as AUS’ CEO and Rick Dillon as CFO.
“I am honored to lead the Aramark Uniform Services team forward, and we are all excited to fully develop the great opportunities before us,” Scott said. “Since October, our team has developed a plan to deliver a step change increase in organic revenue growth and margin.”
The Aramark Board of Directors must still approve the plan.