Cintas Corporation Announces Agreement to Sell Shred-it Investment
By Business Wire News
By Business Wire News
Cintas Corporation (Nasdaq:CTAS) announced that it has entered into a definitive agreement to sell its investment in Shred-it International Inc. (“Shred-it”) to Stericycle, Inc. (Nasdaq: SRCL), a global business to business compliance solutions provider specializing in complex and highly regulated arenas, for consideration of approximately $550 million to $600 million before taxes. The transaction is expected to close in the fourth quarter of 2015, subject to obtaining regulatory approvals and satisfaction of other customary closing conditions. Upon closing of the transaction, Shred-it will become a wholly owned subsidiary of Stericycle.
During April 2014, Cintas formed the Shred-it partnership with Birch Hill Equity Partners and other shareholders of Shred-it International Inc. to combine Shred-it’s business with Cintas’ information destruction business. Under the partnership agreement, Cintas received $180.0 million in cash at the closing of the transaction and retained 42% ownership of Shred-it. In May 2015, Cintas also received a $113.4 million dividend from Shred-it.
Cintas will provide additional details about this transaction during its conference call and webcast to discuss fourth quarter and full fiscal year 2015 results scheduled for 5:00p.m., Eastern Time, on Thursday, July 16, 2015.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,” “target,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release. Factors that might cause such a difference include, but are not limited to, the successful completion of Cintas’ investment in the Shred-it partnership within the expected timeframe or at all. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2014 and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us or that we currently believe to be immaterial may also harm our business.
Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types primarily throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, first aid, safety and fire protection products and services. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of the Standard & Poor’s 500 Index.
J. Michael Hansen, Vice President-Finance and Chief Financial Officer, 513-701-2079
Paul F. Adler, Vice President and Treasurer, 513-573-4195