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.
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.
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