Cintas Announces Multi-Billion Dollar Deal
Cintas Corp. is announcing plans to buy G&K Services in a deal valued at approximately $2.2 billion. According to statements from both companies, Cintas will acquire all outstanding shares of G&K Services for $97.50 per share.
is a uniform and facility services company based in Minneapolis. The company reports annual revenues of approximately $1 billion.
Cintas says the combined company will serve more than one million business customers.
"Cintas' management team and Board of Directors have a deep level of respect for G&K Services, its long and impressive heritage, and its employees," says Cintas CEO Scott Farmer in an announcement. "Our companies share a dedication to customers, employees-partners and shareholders, which will build a great foundation for a successful combination."
G&K Services Chairman Douglas A. Milroy adds, "This is a compelling transaction that delivers substantial and immediate cash value to our shareholders and expands options for our customers going forward. We believe the combination has strong strategic logic and creates the right partnership to meet the evolving needs of our customers. In addition, a larger, more diversified company offers employee opportunities as well."
Both boards have approved the sale but it must still be approved by shareholders and regulators. A Delaware-based law firm says it is investigating the buyout.
The sale is expected take four to six months to close.
Cintas says G&K Services will become a wholly owned subsidiary and will initially operate under its existing brand.
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