Cintas, G&K Finalize Merger

Posted March 23, 2017 at 5:51 pm

As anticipated, Cintas Corp. on March 21 completed its purchase of G&K Services for roughly $2.2 billion, including acquired debt, according to a news release.

Shareholders of G&K, based in Minnetonka, MN, approved the purchase on Nov. 15, 2016. Regulatory concerns related to the acquisition were put to rest on March 17 when Cintas reported that it had received all necessary sign-offs from government officials related to the acquisition with no divestiture requirements.

The combined company is expected to have annual revenues in excess of $6 billion and will serve more than 1 million customers. “We are very pleased to complete this transaction, and we welcome all G&K Services’ customers and employees into Cintas,” said CEO Scott D. Farmer. “We look forward to an exciting future together.”

Company officials describe the combining of Cintas and G&K Services as an important investment that will improve Cintas’ service capabilities for the benefit of customers and employees (aka “partners”) of both Cintas and G&K Services. Those enhanced capabilities will, in turn, contribute to continued growth in revenue and earnings per share, the release said. Cintas, based in Mason, OH, anticipates realizing synergies in the range of $130 million to $140 million. “These synergies are expected to be realized in their entirety in the fourth full year after closing,” the release said.  

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