Aug. 16, 2016—Stinson Leonard Street is representing uniform rental and facility products company G&K Services in its pending sale to Cintas Corporation for $2.2 billion. G&K shareholders will receive $97.50 for each share of common stock held. The boards of directors of both companies have approved the agreement. The transaction is expected to close in four to six months.
The Minneapolis-based G&K Services has 8,000 employees and 165 facilities across the U.S. and Canada. G&K has more than $1 billion in annual revenue and recently reported a 20 percent increase in profit for its fiscal fourth quarter. The company earned $19.8 million in the period that ended July 3, up from $16.6 million a year ago, adjusted for one-time costs and gains. Over the same time, revenue rose 9 percent to $258.5 million.
Douglas A. Milroy, Chairman and Chief Executive Officer of G&K Services, stated, "This is a compelling transaction that delivers substantial and immediate cash value to our shareholders and expands options for our customers going forward."
The Stinson Leonard Street that worked on the deal was: partners Steve Quinlivan, David Jenson, Joel Abrahamson, Angela Bohmann; and attorneys Bryan Pitko, Andrew Kuettel and Marcus Tibesar. The firm's M&A attorneys work closely with clients, focusing on both the legal and business aspects of a transaction to ensure that the deal structure and terms reflect the business goals of our clients. The firm's attorneys strive to understand the financial and operational dynamics of a client's businesses, in order to find creative ways to bridge gaps between buyers and sellers.