Aramark (NYSE: ARMK) is quitting the healthcare technologies business, announcing today that it has agreed to sell that part of its business for $300 million to clinical engineering and asset management company Trimedx.
Best known for its food service, uniform and facilities businesses, Aramark bought the Charlotte, N.C.-based healthcare business in 2001. It has been in operation for over 45 years and employs more than 1,500 technicians, engineers and program staff. Trimedx provides management programs for for maintenance and refurbishment of clinical equipment at more than 500 hospitals and healthcare facilities.
“This transaction represents the latest step in our commitment to deliver sustainable shareholder value, while also increasing our financial flexibility,” said Aramark president & CEO Eric Foss in a prepared statement. “We will use the majority of proceeds to strengthen our balance sheet through debt reduction and will also repurchase $50 million of shares after closing of the sale.”
Trimedx (Indianapolis) started as a hospital biomedical engineering department in the 1990s and now helps more than1,800 providers achieve sustainable savings and efficiencies, according to that company’s website.
“We are excited to bring our technology and service model to a greater number of healthcare providers, delivering a comprehensive and differentiated clinical asset management program in an ever-changing environment,” said Trimedx CEO Henry Hummel in another prepared statement. “We look forward to Aramark HCT’s talented associates joining the Trimedx team to support our strategic operating model focused on partnering with healthcare providers to drive measurable and persistent value.”
The divestiture of its healthcare technologies business will allow Aramark to “further focus our portfolio around our core food, facilities and uniforms businesses,” Foss added.
The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of calendar 2018. Aramark’s stock was up to $42.48 on the news this morning.