USA
Cintas Corporation and G&K Services announced on 16 August that they have entered into a definitive agreement under which Cintas will acquire all outstanding shares of G&K Services for a total enterprise value of approximately $2.2 billion, including acquired net debt.
G&K Services, with annual revenue of approximately $1 billion, is a service-focused market leader of branded uniform and facility services programs in the USA and Canada.
Cintas will pay for $97.50 per share in cash. The total purchase price represents a premium of about 19% to the closing price per share of G&K Service’s common stock on 15 August 2016.
Upon completion of the merger, G&K Services will be a wholly owned subsidiary of Cintas, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies, ultimately resulting in a fully harmonised team.
The combined company will provide innovative products and caring service to over one million business customers.
The boards of directors of both companies have approved the transaction, which is expected to close in the next four to six months.
