Business description of Aramark from last 10-k form
Item 1. Business
Overview
Aramark (the “Company,” “we” or “us”) is a leading global provider of food, facilities and uniform services to education, healthcare, business and industry, and sports, leisure and corrections clients. Our core market is North America (composed of the United States and Canada), which is supplemented by an additional 20-country footprint serving some of the fastest growing global geographies. We hold the #2 position in North America in food, and facilities services and uniform services based on total sales in fiscal 2014. Internationally, we hold a top 3 position in food and facilities services based on total sales in fiscal 2014 in most countries in which we have significant operations, and are one of only 3 food and facilities competitors with our combination of scale, scope, and global reach. Through our established brand, broad geographic presence and approximately 269,500 employees, we anchor our business in our partnerships with thousands of education, healthcare, business, sports, leisure and corrections clients. Through these partnerships we serve millions of consumers including students, patients, employees, sports fans and guests worldwide.
We operate our business in three reportable segments that share many of the same operating characteristics: Food and Support Services North America ("FSS North America"), Food and Support Services International ("FSS International") and Uniform. Both FSS North America and Uniform have significant scale and hold the #2 position in North America, while in our FSS International segment we hold a top 3 position in most countries in which we have significant operations based on fiscal 2014 total sales. The following chart shows a breakdown of our sales and operating income by our reportable segments:
Reportable Segments:
FSS North America
FSS International
Uniform
FY 2014 Sales(a):
$
10,232.8
3,111.2
1,488.9
FY 2014 Operating Income(a):
501.3
106.2
172.1
Services:
Food, hospitality and facilities
Rental, sale, cleaning, maintenance, direct marketing and delivery of personalized uniform apparel and other items
Sectors:
Business and industry, sports, leisure and corrections, education and healthcare
Business and industry, sports, leisure and corrections, healthcare and education
Business, public institutions, manufacturing, transportation and service industries
(a) Dollars in millions. Operating income excludes $(215.0) million related to corporate expenses. For certain other financial information relating to our segments, see Note 15 to the audited consolidated financial statements.
In fiscal 2014, we generated $14.8 billion of sales, $149.5 million of net income and $564.6 million of operating income.
Our History
Since our founding in 1959, we have broadened our service offerings and expanded our client base through a combination of organic growth and successful acquisitions, with the goal of further developing our food, facilities and uniform capabilities, as well as growing our international presence. In 1984, we completed a management buyout, after which our management and employees increased their Company ownership to approximately 90% of our equity capital leading up to our December 2001 public offering. On January 26, 2007, we delisted from the NYSE in conjunction with a going-private transaction (the "2007 Transaction") executed with investment funds affiliated with GS Capital Partners, CCMP Capital Advisors, J.P. Morgan Partners, Thomas H. Lee Partners, L.P. and Warburg Pincus LLC as well as approximately 250 senior management personnel.
On December 17, 2013, we completed an initial public offering of 41,687,500 shares of our common stock, including 13,687,500 shares of common stock sold by our selling stockholders. We did not receive any of the proceeds from the sale of the shares sold by the selling stockholders and we used our proceeds from the initial public offering, net of costs, to pay down debt. Our common stock began trading on the NYSE under the ticker symbol “ARMK” on December 12, 2013.
Our Food and Support Services segments manage a number of interrelated services-including food, hospitality and facility services-for school districts, colleges and universities, healthcare facilities, businesses, sports, entertainment and recreational venues, conference and convention centers, national and state parks and correctional institutions. Our Food and Support Services segments holds the #2 position in North America and a top 3 position in most countries in which FSS has significant operations based on fiscal 2014 total sales.
We are the exclusive provider of food and beverage services at most of the locations we serve and are responsible for hiring, training and supervising substantially all of the food service personnel in addition to ordering, receiving, preparing and serving food and beverage items sold at those facilities. Our facilities services capabilities are broad, and include plant operations and maintenance, custodial/housekeeping, energy management, clinical equipment maintenance, grounds keeping, and capital project management. In governmental, business, educational and healthcare facilities (for example, offices and industrial plants, schools and universities and hospitals), our clients provide us with a captive client base through their on-site employees, students and patients. At sports, entertainment and recreational facilities, our clients attract patrons to their site, usually for specific events such as sporting events and conventions.
We manage our FSS business in two geographic reportable segments split between our North America and International operations. In fiscal 2014, our FSS North America segment generated $10,232.8 million in sales, or 69% of our total sales, and our FSS International segment generated $3,111.2 million in sales, or 21% of our total sales. No individual client represents more than 2% of our total sales, other than, collectively, a number of U.S. government agencies. See Note 15 to the audited consolidated financial statements for information on sales, operating income and total assets for the FSS North America segment and the FSS International segment.
Clients and Services
Our Food and Support Services segments serves a number of client sectors across 22 countries around the world. Our Food and Support Services operations focus on serving clients in four principal sectors:
Sector
Types of Clients
Food Services
Facilities Services
Education
Colleges and universities
Public school districts and systems
Private schools
Dining services
Catering
Food service management
Retail operations
Facilities management
Custodial services
Grounds
Energy management
Construction management
Capital project management
Healthcare
Hospitals
Nursing homes
Food and nutrition services
Clinical equipment maintenance
Environmental services
Laundry and linen distribution
Plant operations
Strategic and technical services
Supply chain management
Purchasing
Central transportation
Business & Industry
Office parks and buildings
Manufacturing plants
Corporate cafeterias
Mining operations
Oil & Gas drilling operations
On-site restaurants
Convenience stores
Executive dining rooms
Coffee and vending
Drinking water filtration
Housekeeping management
Plant operations/maintenance
Groundskeeping
Landscaping
Transportation
Capital program management
Commissioning services
Building operations consulting
Sports, Leisure and Corrections
Professional and collegiate stadiums and arenas
Concert venues
National and state parks
Convention and civic centers
Correctional facilities
Concessions
Banquet and catering
Retail and merchandise sales
Food and nutrition services
Premium and restaurant
Recreational and lodging services
Commissary services
Laundry and linen management
Property room management
Housekeeping management
Facility management