Buyers Access understands the value of providing our members with services and products from top national suppliers. We like to keep our members informed on news, events, and products that our suppliers have to share with us. Below is the Cintas official press release as it pertains to the newly formed partnership with Shred-it International Inc.
The Newly formed Partnership will have over $600 million in Annual Revenues and Operate under the Shred-it name
Cintas Corporation to have 42% ownership of the Partnership and will receive $180 Million in Cash at Closing
CINCINNATI — March 19, 2014 — Cintas Corporation (Nasdaq:CTAS) announced today an agreement with the shareholders of Shred-it International Inc. to combine Cintas’ Document Shredding business with Shred-it’s Document Shredding business. Under the agreement, Cintas and Shred-it will each contribute its document shredding business to a newly formed partnership that will be owned 42% by Cintas and 58% by the shareholders of Shred-it. The combined entity will operate under the Shred-it brand and is expected to have annual revenues in excess of $600 million. In addition to its 42% ownership of the partnership, Cintas will receive approximately $180 million in cash at the closing of the transaction.
“We are confident that this transaction is the best path forward for our Document Shredding customers, our workforce and our shareholders,” said Scott D. Farmer, Cintas’ Chief Executive Officer. “Together, we expect that Cintas Document Shredding and Shred-it will be the industry leader, benefitting from increased scale, resources and strong cash flow to uniquely position the new company to provide world class information protection services to its customers.”
Following completion of the transaction, the combined company will be led by Vince DePalma, current President and Chief Executive Officer of Shred-it, who will become the President and Chief Executive Officer of the newly formed company, and Karen Carnahan, now President and Chief Operating Officer of Cintas’ Document Management Division, who will become Chief Operating Officer of the newly formed company.
Karen Carnahan stated, “The Cintas Document Shredding team is excited to join forces with Shred-it to create a global leader in document destruction services. Shred-it has been a strong and well respected competitor over the years, and we look forward to working together to bring innovative ideas and superior customer service to our combined customer base.”
The transaction, which was approved by Cintas’ Board of Directors, is expected to close before Cintas’ fiscal year end which is May 31, 2014, subject to the customary closing conditions and various approvals.
With regards to Cintas’ Global Document Storage and Imaging business, Cintas is currently exploring strategic opportunities for this business and will provide additional details in the future as appropriate.
To read full press release click here.