Vestis to Sell Minority Stake in Japanese Joint Venture

Posted 6:30AM on Monday, September 30, 2024

ATLANTA--(BUSINESS WIRE)--Sep 30, 2024--

Vestis (NYSE: VSTS), a leading provider of uniforms and workplace supplies, today announced an agreement to sell its 39% equity stake in Aramark Uniform Services Japan Corporation (“AUSJ”) to majority owner Mitsui & Co., Ltd. for approximately $37 million. The Company will use the proceeds from the transaction toward debt repayment.

AUSJ, a uniform rental services provider in Japan, was established in 1988 as a joint venture between a group of companies including Vestis’ former parent company Aramark. Vestis does not expect to record a material gain or loss as a result of the sale of its minority stake, which was accounted for as a non-operating equity investment and therefore not included in Operating Income or Adjusted EBITDA. The Company believes that monetizing this non-operating asset will further enhance its strategic focus, strengthen its balance sheet and provide additional financial flexibility.

The transaction is expected to close by the end of October 2024, subject to customary closing conditions and approvals.

About Vestis™

Vestis is a leader in the B2B uniform and workplace supplies category. Vestis provides uniform services and workplace supplies to a broad range of North American customers from Fortune 500 companies to locally owned small businesses across a broad set of end sectors. The Company’s comprehensive service offering primarily includes a full-service uniform rental program, floor mats, towels, linens, managed restroom services, first aid supplies, and cleanroom and other specialty garment processing.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the securities laws regarding our sale of AUSJ and the proceeds therefrom. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict including, but not limited to: the uncertainty of whether the conditions to the consummation of the sale will be satisfied, the impact of changes in exchange rates on the ultimate proceeds of the sale and the timing and occurrence (or non-occurrence) of other transactions, events and circumstances which may be beyond our control. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

View source version on businesswire.com:https://www.businesswire.com/news/home/20240926924931/en/

CONTACT: Investors

Michael Aurelio, CFA

470-653-5015

[email protected]

Danielle Holcomb

470-716-0917

[email protected] Smithfield

[email protected]

KEYWORD: GEORGIA UNITED STATES JAPAN NORTH AMERICA ASIA PACIFIC

INDUSTRY KEYWORD: OTHER PROFESSIONAL SERVICES OFFICE PRODUCTS TEXTILES SMALL BUSINESS PROFESSIONAL SERVICES MANUFACTURING RETAIL BUSINESS

SOURCE: Vestis

PUB: 09/30/2024 06:30 AM/DISC: 09/30/2024 06:30 AM

http://www.businesswire.com/news/home/20240926924931/en

The Associated Press

The Associated Press is an American multinational nonprofit news agency headquartered in New York City. The AP is owned by its contributing newspapers, radio, and television stations in the United States, all of which contribute stories to the AP and use material written by its staff journalists.