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Aramark says IPO could price at up to $835M

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December 2, 2013 12:24 PM EST | AP


NEW YORK (AP) — Foodservice company Aramark said Monday that it expects to raise between $725 million and $835 million in its initial public offering.

Aramark said the IPO will consist of nearly 36.3 million shares, priced between $20 and $23 each. At the top end of that range, that would give Aramark a market value of $5.29 billion based on its estimated 230 million shares outstanding after the IPO.

Founded in 1959, the Philadelphia company provides food, uniforms and other services to schools, hospitals, sports facilities and businesses in the U.S. and abroad, as well as for major international events like the London Olympics. It has about 272,000 employees across 22 countries. Aramark said its net income fell in fiscal 2013 but revenue rose 3 percent to $13.95 billion.

Publicly traded since 1960, Aramark went private in 1984 after then-CEO Joseph Neubauer organized a management-led buyout to prevent a hostile takeover. He took Aramark public again in 2001, but then delisted the stock in 2007 after orchestrating a $6.3 billion acquisition by an investment group. Eric Foss, former CEO of Pepsi Bottling Group, took over as CEO and president in May 2012. Neubauer remains chairman.

Aramark is selling 28 million shares, and the rest are being sold by company stockholders. Those stockholders have agreed to sell 5.4 million additional shares if demand exceeds initial supply.

Aramark Holdings Corp. shares will trade on the New York Stock Exchange under the ticker symbol "ARMK."