Aramark chief executive to lead management buy-out of the contract caterer

02 May 2006
Aramark chief executive to lead management buy-out of the contract caterer

Aramark chief executive Joseph Neubauer is leading a $5.8b (£3.2b) buy-out of the American caterer.

Neubauer, with the financial backing of banks Goldman Sachs and JPMorgan, will offer shareholders $32 (£17.50) per share - a 14% premium on Friday's figure at the close of play.

The board of directors has formed a committee of independent directors to consider the proposal.

In a statement, Aramark said: "The board has just received the proposal and no decisions have been made by the board with respect to the company's response to the proposal."

It would not be the first time Neubauer took the company private. A year after becoming chief executive in 1983 he led a management buy-out before taking the company public again in 2001.

Panmure Gordon analyst Mike Murphy said the move may be due to the fact that Neubauer thought the company was undervalued by the stock market.

"Contract catering is still an attractive long-term option. They are low-capital cash-generative businesses and the buyers may see the potential for longer-term growth as opposed to the shorter-term approach of the stock market," he said.

Aramark UK refused to comment on the implications of such a move for the UK group.

By Tom Bill

Get your copy of Caterer and Hotelkeeper every week -

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking