Aramark (NYSE: ARMK), a leading company in food, facilities management, and uniforms, revealed on Wednesday that the spinoff of its uniforms and workplace supplies business has been given the green light. The new entity will be called Vestis and is expected to be fully established by September 30.
Aramark shareholders will receive one share of Vestis common stock for every two Aramark shares they own as of September 20. The trading of Vestis shares on the New York Stock Exchange is set to commence on October 2, using the ticker symbol “VSTS.”
Aramark Chief Executive, John Zillmer, expressed his satisfaction with the approval, stating, “This achievement marks a significant milestone in the establishment of two distinct companies, both equipped with clear strategies for long-term value generation.” He further added, “Aramark will continue to operate as a global leader in food and facilities services, while Vestis will focus on delivering exceptional uniform and workplace supplies solutions under the leadership of CEO Kim Scott.”
Over the past three months, Aramark’s stock has experienced an 8.9% decline, while the S&P 500 has seen a 5.0% increase.
This development signifies a strategic move by Aramark to create separate entities that can advance their respective industries while nurturing long-term growth and value creation.