Aramark

exited

Services / Food Service — GS Capital Partners / Warburg Pincus / CCMP / THL / JPMorgan

Deal Terms

Entry Year2007

Entry EV$8.3B

Entry Multiple10x

Leverage5x

Debt Amount$4.15B

Outcome

Exit Year2013

Risk Metrics

LTV (est.)50%

Debt / EV0.50x

Notes

MBO led by CEO Neubauer backed by PE consortium for $8.3B (2007) including $2B assumed debt. World's largest food service company. IPO'd 2013 at $9B. PE-backed Aramark serves prisons, schools, hospitals — captive customers who can't leave. Prison food scandals (maggots, shortages) plagued PE-era operations. Cost-cutting on food for America's most vulnerable populations.

Sponsor

Partners Group$185B AUM

Hot Potato History

1984→Public Market

2007→GS Capital + CCMP + Warburg Pincus + Thomas H. Lee + JPMorgan($8.3B)

2014→Public (re-IPO)($8.3B)

Public. Stock essentially flat since re-IPO. PE made money on dividend recaps and fees. Public market investors got nothing.