Aramark MBO ‘will boost performance'

17 August 2006
Aramark MBO ‘will boost performance'

US catering giant Aramark will pick up its performance in the UK after group chief executive Joseph Neubauer completes his £4.4b buyout, according to the firm's UK boss, Andrew Main.

Main said the deal, which was sealed last week with the backing of five private equity groups, puts the company's destiny back in its own hands.

"The quarterly Wall Street reviews were hampering the ability to take a long view with clients," he said.

The sale, which is due to complete late this year or in early 2007, will see shareholders receive $33.80 (£17.90) per share and includes about £1.06b of debt.

Financial analysts agreed with Main that the company will operate more effectively out of the Wall Street spotlight.

Bruce Simpson, analyst at US investment bank William Blair, said: "Not only will they save millions in red tape but Neubauer won't have to justify his decisions to outsiders."

An Aramark spokesman said the buyout would not affect the UK business, which employs 12,400 people. Aramark UK turns over an estimated £360m, which is dwarfed by the global figure of £5.82b.

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