Aramark, a food service provider, on Tuesday accepted a management buyout from Joseph Neubauer, its chairman and CEO, in conjunction with a private equity consortium.

The Philadelphia-based company's board of directors unanimously accepted the deal worth $8.3 billion including $2 billion in debt. This acceptance came after the firm warned Wall Street that its third quarter would not meet its expectations. The transaction was expected to be completed by late 2006 or early 2007.

"We are proud to partner with this distinguished group of private equity firms, all of which have outstanding reputations and proven records of success,' said Joseph Neubauer, ARAMARK Chairman and Chief Executive Officer. "They are committed to working with us in building long-term solutions that deliver the most value for our clients and customers.'

Aramark Corporation, with a workforce of 240,000 employees, provides food services, facilities management and uniform apparel to hospitals, schools, stadiums and arenas. Questions about job security for the 240,000 employees remained unanswered. Nuebauer thanked the current employees for their effort in the firm.

"Our success is driven by the ongoing efforts of our 240,000 employees around the world,' said Nebauer. "I want to thank them for their efforts and assure them we will remain focused on sustaining profitable growth by delivering outstanding environments, experiences and outcomes for our clients.'

The transaction will be financed through a combination of equity contributed by Joseph Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC, and debt financing provided by JP Morgan Chase Bank, N.A., J.P. Morgan Securities, Inc. and Goldman Sachs Credit Partners L.P.

Investment Jpmorgan chase