Exhibit No. 99(f)
FOR IMMEDIATE RELEASE
Company Contact: Contact:
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Investor Relations Investor Relations
Leeny Oberg, VP John D. Lovallo, SVP
Sodexho Marriott Services, Inc. Makovsky & Company
(301) 380-2745 (212) 508-9600
Media Relations Media Relations
Steve Brady, SVP, Corporate Comm. Tom Reno, SVP
Sodexho Marriott Services, Inc. Makovsky & Company
(301) 380-3953 (212) 508-9600
SODEXHO MARRIOTT SERVICES, INC. FORMED ON THE
COMPLETION OF SPIN-OFF AND MERGER TRANSACTIONS
Creates the Leading Provider of Outsourced Food and
Facilities Management in North America
BETHESDA, Maryland, March 27, 1998 -- Sodexho Marriott Services,
Inc. (NYSE:SDH-W) reported today the completion of the previously announced
spin-off and merger transactions, creating the leading provider of outsourced
food and facilities management in North America. Sodexho Marriott Services
is currently trading on the New York Stock Exchange on a "when-issued" basis.
As a result of these transactions, Marriott International, Inc.
(NYSE:MAR) spun- off to its stockholders on a tax-free basis, a new company
comprised of its lodging, senior living services and distribution service
businesses. This new company has adopted the Marriott International, Inc.
name. Immediately following the spin-off, Marriott's food service and
facilities management business, Marriott Management Services, merged with the
North American operations of Sodexho Alliance. The combined company formed
Sodexho Marriott Services, Inc.
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Sodexho Marriott Services, is the largest provider of outsourced
food and facilities management in North America. The company, which has over
4,800 client relationships, offers a variety of outsourcing solutions,
including food services, housekeeping, grounds keeping, plant operations and
maintenance, and integrated facilities management to the corporate, health
care and education markets. Sodexho Marriott Services is one of the top 50
employers in the United States with over 100,000 employees and managing an
additional 60,000 employees on behalf of its clients. On a pro forma basis,
1997 calendar year sales would have been over $4.1 billion and earnings
before interest, taxes, depreciation and amortization (EBITDA) would have
been $240 million.
Charles D. O'Dell, Sodexho Marriott Services, Inc. President and
Chief Executive Officer commented, "The combination of Marriott Management
Services and Sodexho North America is representative of an effective business
strategy which combines two powerful brands, recognized for quality, service
and leadership. Furthermore, the marketplace is increasingly turning to
large, nationally-integrated suppliers like Sodexho Marriott Services to meet
their expanding outsourcing needs."
Outsourcing services is a trend that is expanding throughout all
sectors of the economy. With the continued pressure to contain costs, a full
75% of American companies, hospitals and educational institutions either
outsource services or are evaluating opportunities to do so. The size of
this market is estimated to be $157 billion, with $48 billion associated with
food services and $109 billion with facilities management. The North
American market remains substantially underpenetrated, with only $27 billion,
or 17% of the total potential market, currently contracted to management
providers.
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Charles D. O'Dell stated, "As the industry leader, we have
significant cross-selling potential in facilities management services to our
existing food services customers. Demand for providers of national,
multi-service outsourcing is rapidly growing. With the national and global
network, Sodexho Marriott Services can provide integrated management
solutions to a wide range of industries, including corporate, health care and
education markets."
As a result of the spin-off and merger transactions, a
stockholder of record as of March 27, 1998 with 100 shares of "old " Marriott
International, Inc. common stock, for example, will own the following: 25
shares of Sodexho Marriott Services, Inc. common stock (NYSE:SDH), which
reflects a one-for-four reverse stock split; 100 shares of Marriott
International, Inc. common stock (NYSE:MAR); and 100 shares of Marriott
International, Inc., Class A common stock (NYSE:MAR.A).
Sodexho Marriott Services, Inc. is the largest food service and
integrated facilities management provider in North America with more than
4,800 clients and annual sales in excess of $4 billion. It was created by
the merger of Marriott Management Services and the North American operations
of Sodexho Alliance. Sodexho Marriott Services provides a variety of
outsourcing solutions, including food services, housekeeping, groundskeeping
and plant operations and maintenance, to major business sectors such as the
corporate, health care and education markets. Headquartered in Bethesda,
Md., the company employs more than 100,000 people and manages over 60,000
client employees.
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