Cintas secures antitrust clearance for $2.2 billion purchase of G&K Services
Clients Cintas Corporation
Jones Day represented Cintas Corporation in securing antitrust clearance from the Federal Trade Commission for its $2.2 billion purchase of G&K Services, Inc. Cintas and G&K were two of the four largest suppliers of workwear rental services in the United States with 149 and 40 processing plants, respectively. Workwear rental services include the provision, delivery, and pickup of workwear as well as laundering, repair, upgrade, and exchange of workwear to businesses in nearly every industry (e.g., health care, food services, gaming, educational, hospitality, automotive, and manufacturing).
Cintas agreed to acquire G&K on August 15, 2016. Cintas closed the transaction on March 21, 2017, with no divestitures, after complying with a eight-month antitrust investigation by the Federal Trade Commission and Canadian Competition Bureau. The combined company expects to have over $6 billion in annual revenues, while serving over one million businesses. Cintas has publicly reported expected annual synergies in the range of $130-$140 million from the transaction.