Cintas Corporation (CTAS) to Acquire McKesson's (MCK) ZEE Medical
Get Alerts CTAS Hot Sheet
Revenue Growth %: +9.1%
Financial Fact:
Cost of rental uniforms and ancillary products: 540.93M
Today's EPS Names:
BFRI, HCTI, IMPM, More
Join SI Premium – FREE
Cintas Corporation (NASDAQ: CTAS) has entered into a definitive agreement to purchase ZEE Medical from McKesson Corporation (NYSE: MCK) for consideration of approximately $130 million in cash. The transaction is expected to close on August 1, 2015.
This acquisition, with expected annual revenue of $110 million to $120 million, expands Cintas' footprint in van delivered first aid, safety, training and emergency products and allows the company to serve an even greater number of customers in North America.
Cintas CEO Scott Farmer said, “ZEE Medical was the pioneer in van delivered first aid and safety services. We believe that this acquisition will help us continue to maximize our long-term value for our shareholders, while positioning us to provide an even greater array of products and services for our customers.”
Cintas provided initial fiscal 2016 guidance on July 17, 2015, for revenue to be in the range of $4.70 billion to $4.78 billion, and earnings per diluted share to be in the range of $3.74 to $3.83. Updated fiscal 2016 guidance to give effect to the ZEE Medical acquisition will be provided in September when fiscal 2016 first quarter results are announced and the details of the purchase accounting are finalized.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Dril-Quip (DRQ) and Innovex to Combine
- Li-Cycle (LICY) Provides Business Update, Following Announcement of $75 Million Investment from Glencore
- Cisco Systems (CSCO) Completes Acquisition of Splunk (SPLK)
Create E-mail Alert Related Categories
Corporate News, Guidance, Management Comments, Mergers and Acquisitions, SpinoffsRelated Entities
Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!