Viad to retain leisure/entertainment

Having steered its path well away from the acquisition trail for over a dozen years, ARAMARK, the Philadelphia, PA-based managed services global giant, recently reached an agreement to acquire the 150 dining service accounts of Restaura, Inc. from the Viad Corp., Phoenix, AZ.

These accounts represent 390 locations with a total managed volume of $180 million annually. The transaction—subject to regulatory approval—is expected to close later this month.

Viad Corp. retains Restaura's leisure and entertainment group (approx. 15 accounts), including restaurant and concession contracts at Bank One Ballpark and America West Arena (both in Phoenix), as well as the lodging facilities at Glacier Natl. Park in Montana. The yet-to-be-named Viad Corp. division will be headed up by Joseph Fassler as pres. and ceo.

Fassler, a 36-year veteran of the company, who has served as its pres. and ceo for the past 18 years, was determined to find a buyer who would recognize and honor the uniqueness of the 80-year-old company.

Seeking a 'fit': "Once I realized Viad didn't want to be in the contract business (the margins and growth in leisure accounts fit Viad's criteria better), I said, 'Let's not destroy Restaura. Let's find a parent for this company."

"I honestly believe they'll continue to run it like Restaura. They will have made a very nice investment if they don't try to change what they bought," Fassler asserts.

According to John Zillmer, pres. of ARAMARK's Business Svcs. Companies (reporting to Charles Kiernan, pres. of Food & Support Svcs.), this division now becomes a $1.7-billion business comprising business svcs., corrections and Restaura. Its last sizeable f/s acquisition was Szabo (correctional) in 1986.

"We've not participated in the consolidation activity of the industry. We've grown organically by more than 10% compound rate and chose that approach vs. acquisition. Last year, we sold $150 million in new business and that cost us significantly less in sales force (salaries) than to acquire whole companies," he points out.