The FINANCIAL — InterContinental Hotels Group on October 16 announces that the owners of Avendra, LLC, a North American hospitality procurement services provider, have reached a binding agreement to sell Avendra to Aramark for $1,350 million.
IHG was a founding shareholder in Avendra and has a 6.3% minority interest with a book value of $2.1m, but has not been an active user of its services in recent years. On completion of the transaction IHG expects to receive gross cash proceeds of approximately $74m, with estimated post tax proceeds of $44m. In addition, IHG will no longer receive an annual dividend distribution from Avendra, this has averaged $3.5m over the past two years, according to IHG.
The transaction is subject to Antitrust clearance and satisfaction of other customary closing conditions. The parties expect the transaction to close before year-end.
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