PHILADELPHIA--(BUSINESS WIRE)--Aramark (NYSE: ARMK) announced today that it completed the previously announced acquisition of Avendra for approximately $1.35 billion, or a net purchase price of $1.05 billion after adjusting for the value of the anticipated tax benefits.

Avendra is the leading hospitality procurement services provider in North America, managing nearly $5 billion in annual purchasing spend for over 650 companies at more than 8,500 locations, including over half of the Top 30 hotel chains. Avendra was founded in 2001 by five hospitality leaders: Marriott, Hyatt, Fairmont Hotels, ClubCorp and IHG.

“By uniting the proven purchasing and supply chain management expertise of our two companies, we will create increased scale and improve service levels for our customers, strengthen our industry reach, provide new opportunities for our associates and drive sustained shareholder value,” said Eric J. Foss, Chairman, President and CEO of Aramark. “I welcome Avendra’s talented and experienced team to the Aramark family and look forward to the bright future we will build together.”

The merger also creates opportunities for Aramark and Avendra to expand their customer base outside of their traditional industries. Additionally, Aramark anticipates annual procurement cost synergies of approximately $40 million, which it expects will be fully realized by the third fiscal year after closing.

Avendra will continue to operate under the Avendra brand name, and its headquarters will remain in Rockville, Maryland.

About Aramark

Aramark (NYSE: ARMK) proudly serves Fortune 500 companies, world champion sports teams, state-of-the-art healthcare providers, the world's leading educational institutions, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world. Our 270,000 team members deliver experiences that enrich and nourish millions of lives every day through innovative services in food, facilities management and uniforms. We operate our business with social responsibility, focusing on initiatives that support our diverse workforce, advance consumer health and wellness, protect our environment, and strengthen our communities. Aramark is recognized as one of the World's Most Admired Companies by FORTUNE as well as an employer of choice by the Human Rights Campaign and DiversityInc. Learn more at www.aramark.com or connect with us on Facebook and Twitter.