Cintas Corporation (CTAS)

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CTAS soars $7 on plan to buy competitor G&K Services

"Work uniform company Cintas Corp. has entered an agreement to acquire G&K Services Inc. in a deal estimated to be worth $2.2 billion. Minnetonka, Minn.-based G&K is a provider of branded uniform and facility services programs in the U.S. and Canada. It has an annual revenue of about $1 billion and will bring the combined companies to a total of more than 1 billion business customers. Savings are expected to range from $130 million to $140 million in the fourth year after closing, according to Cintas. Cintas has three Milwaukee-area locations — in Milwaukee, Franklin and Menomonee Falls — while G&K has one area location in Menomonee Falls. The deal is expected to contribute to strong organic growth"