Cintas to buy G&K Services in $2.2 Bln deal

Cintas will pay.93 billion in cash according to Reuters calculations. GK's long-term debt net of current maturities stood at 0.45 million as of March 26

Cincinnati-based Cintas provides uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training to a variety of industries.

GK Services, the maker of work uniforms that started as dye house in Minneapolis 114 years ago, was sold to Cintas Corp. for $2.2 billion, the companies said this morning. The total deal value also includes the assumption of GK’s debt, the companies said in statements Tuesday.

Under the terms of the agreement, shareholders of GK will receive $97.50 in cash for each share of GK common stock.

The news came as GK reported a 20 percent jump in profit for its fiscal fourth-quarter.

Rigrodsky Long, P.A. announces that it is investigating potential legal claims against the board of directors of GK Services, Inc. The acquisition is expected to be completed in the four to six months and add to Cintas’s earnings in the second full year after closing. Additionally, the company anticipates realizing annual synergies in the range of $130 million to $140 million.

Upon completion of the merger, GK Services will be a wholly owned subsidiary of Cintas, and is expected to initially operate under its existing brand name.

About author