Cintas announced that it has completed its previously announced partnership transaction with the shareholders of Shred-it International to combine Cintas’ Document Shredding business with Shred-it’s Document Shredding business. Under the agreement, Cintas and Shred-it each contributed its document shredding business to a newly formed partnership owned 42% by Cintas and 58% by the shareholders of Shred-it. The combined entity is expected to have annual revenues in excess of $600M. In addition to its 42% ownership of the partnership, Cintas received $180M in cash at the closing of the transaction. The transition and integration plan of the two document shredding businesses is expected to take about 18 months. Both Cintas and Shred-it are confident that this transition and integration plan will not have any adverse impact on the combined business, and the new partnership will continue to provide the great service levels that its customers are accustomed to receiving from each of these businesses.
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