Vestis to Sell Minority Stake in Japanese Joint Venture
Vestis (NYSE: VSTS), a leading uniforms and workplace supplies provider, has announced an agreement to sell its 39% equity stake in Aramark Uniform Services Japan (AUSJ) to majority owner Mitsui & Co., for approximately $37 million. The proceeds will be used for debt repayment. AUSJ, established in 1988, is a uniform rental services provider in Japan.
Vestis does not anticipate recording a material gain or loss from this sale, as the stake was accounted for as a non-operating equity investment. The company believes this move will 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 (NYSE: VSTS), un fornitore leader di uniformi e forniture per l'ambiente di lavoro, ha annunciato un accordo per vendere la sua partecipazione del 39% in Aramark Uniform Services Japan (AUSJ) al proprietario di maggioranza Mitsui & Co., per circa 37 milioni di dollari. I proventi saranno utilizzati per il rimborso del debito. AUSJ, costituita nel 1988, è un fornitore di servizi di noleggio uniformi in Giappone.
Vestis non prevede di registrare un guadagno o una perdita materiale da questa vendita, poiché la partecipazione era contabilizzata come un investimento azionario non operativo. L'azienda crede che questa mossa migliorerà il suo focus strategico, rafforzerà il suo bilancio e fornirà maggiore flessibilità finanziaria. La transazione dovrebbe chiudersi entro la fine di ottobre 2024, soggetta a condizioni e approvazioni di chiusura consuete.
Vestis (NYSE: VSTS), un proveedor líder de uniformes y suministros para el lugar de trabajo, ha anunciado un acuerdo para vender su participación del 39% en Aramark Uniform Services Japan (AUSJ) al propietario mayoritario Mitsui & Co., por aproximadamente 37 millones de dólares. Los ingresos se utilizarán para pago de deuda. AUSJ, establecida en 1988, es un proveedor de servicios de alquiler de uniformes en Japón.
Vestis no anticipa registrar una ganancia o pérdida material por esta venta, ya que la participación se contabilizaba como una inversión de capital no operativa. La compañía cree que este movimiento mejorará su enfoque estratégico, fortalecerá su balance y proporcionará mayor flexibilidad financiera. Se espera que la transacción se cierre a finales de octubre de 2024, sujeta a condiciones y aprobaciones de cierre habituales.
Vestis (NYSE: VSTS)는 선도적인 유니폼 및 직장 용품 공급업체로서, 자사의 39% 지분을 Aramark Uniform Services Japan (AUSJ)에서 대주주인 Mitsui & Co.에게 약 3,700만 달러에 매각하기로 합의했다고 발표했습니다. 이 자금은 부채 상환에 사용될 예정입니다. AUSJ는 1988년에 설립된 일본의 유니폼 대여 서비스 제공업체입니다.
Vestis는 이번 판매로 인해 실질적인 손익을 기록할 것으로 예상하지 않으며, 이 지분은 비운영 자본 투자로 회계 처리되었습니다. 회사는 이번 조치가 전략적 집중을 강화하고 재무 구조를 개선하며 추가적인 재정적 유연성을 제공할 것이라고 믿고 있습니다. 거래는 2024년 10월 말까지 완료될 것으로 예상되며, 관례적인 종료 조건 및 승인을 받는 것에 따라 달라질 수 있습니다.
Vestis (NYSE: VSTS), un fournisseur leader d'uniformes et de fournitures de travail, a annoncé un accord pour vendre sa participation de 39% dans Aramark Uniform Services Japan (AUSJ) au propriétaire majoritaire Mitsui & Co., pour environ 37 millions de dollars. Les produits de la vente seront utilisés pour rembourser des dettes. AUSJ, fondée en 1988, est un fournisseur de services de location d'uniformes au Japon.
Vestis ne prévoit pas d'enregistrer un gain ou une perte matériel suite à cette vente, car la participation était comptabilisée comme un investissement en capital non opérationnel. L'entreprise estime que cette décision améliorera son orientation stratégique, renforcera son bilan et offrira une flexibilité financière supplémentaire. La transaction devrait être finalisée d'ici fin octobre 2024, sous réserve des conditions et approbations de clôture habituelles.
Vestis (NYSE: VSTS), ein führender Anbieter von Uniformen und Arbeitsplatzbedarf, hat eine Vereinbarung bekannt gegeben, um seinen 39%-Anteil an Aramark Uniform Services Japan (AUSJ) an den Mehrheitsanteilseigner Mitsui & Co. für ca. 37 Millionen Dollar zu verkaufen. Der Erlös wird für Schuldenrückzahlung verwendet. AUSJ, gegründet 1988, ist ein Anbieter von Uniformverleihdiensten in Japan.
Vestis erwartet nicht, aus diesem Verkauf einen materiellen Gewinn oder Verlust zu verbuchen, da der Anteil als nicht-operatives Eigenkapitalinvestment verbucht wurde. Das Unternehmen glaubt, dass dieser Schritt seine strategische Ausrichtung verbessern, seine Bilanz stärken und zusätzliche finanzielle Flexibilität bieten wird. Die Transaktion soll bis Ende Oktober 2024 abgeschlossen sein, vorbehaltlich der üblichen Abschlussbedingungen und Genehmigungen.
- Sale of minority stake for $37 million, providing additional capital
- Proceeds to be used for debt repayment, potentially improving financial position
- Enhanced strategic focus by divesting non-core asset
- Strengthened balance sheet and increased financial flexibility
- Loss of potential future income from the Japanese joint venture
Insights
This transaction represents a strategic move by Vestis to streamline its operations and strengthen its financial position. The sale of the
The decision to use the proceeds for debt repayment is prudent, as it will improve the company's balance sheet and potentially reduce interest expenses. This could lead to improved financial flexibility and a better debt-to-equity ratio. However, the impact on earnings may be minimal, as the stake was a non-operating equity investment not included in Operating Income or Adjusted EBITDA.
Investors should note that while this move doesn't directly boost revenues or profits, it aligns with Vestis' strategy to focus on core operations and optimize its capital structure. The long-term benefits could include enhanced ability to invest in growth opportunities or return value to shareholders.
Vestis' divestment of its minority stake in AUSJ signals a shift in its international strategy, particularly in the Asian market. This move suggests that Vestis is prioritizing its core markets and operations, likely in North America where it has a stronger presence.
The uniform rental services market in Japan, while substantial, may have different growth dynamics compared to Vestis' primary markets. By exiting this joint venture, Vestis is potentially reducing its exposure to market-specific risks in Japan and consolidating its resources for more strategic initiatives.
For investors, this transaction indicates Vestis' commitment to optimizing its portfolio and focusing on areas where it has operational control and stronger growth prospects. The
AUSJ, a uniform rental services provider in
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/
Investors
Michael Aurelio, CFA
470-653-5015
michael.aurelio@vestis.com
Media
Danielle Holcomb
470-716-0917
danielle.holcomb@vestis.com
Edelman Smithfield
vestis@edelmansmithfield.com
Source: Vestis
FAQ
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