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Spin-offs/Aramark → Vestis Corporation

Vestis CorporationVSTS

Spin-off from Aramark (ARMK) · Sep 30, 2023 · NYSE

Announced
—
Form 10 filed
Aug 15, 2023
Record date
Sep 20, 2023
Distributed
Sep 30, 2023
Ratio
1 : 2
Debt loaded
$1.5B
Cash to parent
—
Latest filing
Sep 6, 2023

one share of Vestis for every two shares of Aramark

Documents

Form 10Information statementNew company filingsParent filings

Both companies today

The new company
Vestis CorporationVSTS
Market cap
$1.75B
Moat
None
Quality
22
Price
$13.26
Fair value
$0.44
Price / FV
28.06×
The parent
AramarkARMK
Market cap
$15.0B
Moat
Narrow
Quality
40
Price
$56.78
Fair value
$22.17
Price / FV
2.54×

Moat ratings, quality scores and fair value estimates are MoatScope research opinions and refresh with the data pipeline. Price / FV below 1.00× means the shares trade under our base-case estimate.

What is being separated

Vestis is one of the largest uniform rental and workplace supplies providers in the United States and Canada, supplying uniforms, mats, towels, linens and restroom and safety products, with revenue of about $2.7 billion in fiscal 2022.

Stated rationaleAramark said separating Aramark Uniform Services would let each company pursue its own growth strategy and capital allocation.

The four questions

The four-question write-up for Vestis Corporation is pending. Terms, documents and both companies’ numbers above are live; the checklist is added once the information statement has been worked through.

Not investment advice. Terms are as stated in the latest filing; spin-off shares are often thinly covered and volatile in their first months.