Sunday, April 19, 2015

Aramark perks up with Filterfresh coffee purchase

The Philadelphia-based food-service giant is acquiring the Filterfresh office-coffee service from Green Mountain Coffee Roasters for $145 million in cash.

Aramark perks up with Filterfresh coffee purchase

Aramark Corp. is buying the Filterfresh office-coffee business of Green Mountain Coffee Roasters Inc., of Waterbury, Vt., for about $145 million in cash.

Technically, what Aramark is buying is called Van Houtte USA Holdings Inc. The Philadelphia-based Aramark has long had a coffee business through its Aramark Refreshment Services L.L.C. unit.

Green Mountain, which has annual sales of about $1.4 billion, had acquired Van Houtte as part of a Dec. 17 purchase of LJVH Holdings Inc. for $905 million. At the time, the publicly traded Green Mountain said it intended to sell the U.S. coffee-service business known as Filterfresh.

Aramark is a privately held food-service giant with sales of $12.57 billion for its fiscal year ended Oct. 1. According to its most recent annual report, Aramark said its Refreshment Services unit saw a decline "due to lower populations at client locations."

For the nine months ended July 1, overall sales for Aramark rose to $9.91 billion from $9.41 billion for the same period a year ago.

On a day when the U.S. equity markets rallied, Green Mountain shares closed at $98.71 up 80 cents, or 0.8 percent.

(BTW - Sources close to my desk say that Green Mountain is the coffee served in the cafeteria on the fourth floor of 400 N. Broad St.)

Inquirer Columnist
About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

Mike Armstrong Inquirer Columnist
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