Cintas to buy G&K Services in a $2.2 billion deal
Cintas Corp. announced Tuesday that it will buy G&K Services Inc. in a deal that values the uniform and facilities services company at about $2.2 billion. Under terms of the deal, Cintas will pay $97.50 for each G&K share outstanding, representing a 19% premium to Monday's closing price. The deal, which is expected to close in the next four to six months, is expected to add to Cintas' earnings in the second full year after closing. Annual synergies are expected to be in the range of $130 million to $140 million. G&K shares, which were halted for news until 9:00 a.m. ET, had run up 31% year to date through Monday, while the S&P 500 had gained 7.2%. Cintas shares, which were still inactive in premarket trade, had climbed 18% so far this year.
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