Cincinnati-based Cintas Corporation (NASDAQ:CTAS) has announced its plans to close a facility in Indianapolis, eliminating 69 jobs in the process. The company did not officially announce the plant closure and layoffs, but filed a layoff notice on Friday, June 2, 2017 with the Indiana Department of Workforce Development.
Cintas, which supplies work uniforms, safety items, and other workplace products, did not state a reason for the closure, but says the move will be permanent. In a notice to the state, Cintas said the closure will result in the termination of 69 jobs. The layoffs are expected to be completed by the end of July.
“Over the course of the next two months, the company expects to terminate its workforce at the address as a result of the permanent closure of the facility,” Cintas wrote in its letter to the state.
Cintas said positions to be eliminated include roughly 20 sales representatives and managers, as well as around 50 employees who load, unload, sort, pack, and repair rental products.
The company noted that employees do not have any union representation, but some of those who are being laid off will receive benefits in accordance with Cintas’ benefits plan and policies.
The facility that is being shuttered is a former G&K Services Inc. plant that is in close proximity to another Cintas facility. Cintas acquired Minnesota-based G&K in March for approximately $2.2 billion, which includes acquired net debt. G&K operates as a wholly owned subsidiary of Cintas.
The combined company will have revenue in excess of $6.0 billion and Cintas is expected to realize, “annual synergies in the range of $130 million to $140 million,” by the fourth quarter.
Cintas has four locations throughout Indianapolis and more than 400 facilities in North America.
In the third quarter of fiscal 2017, ended February 28, 2017, Cintas announced that revenue increased 5.3% year-over-year to $1.28 billion. The organic growth rate was 6.5%.
Net income from continuing operations in the third quarter of 2017 was $119.0 million, or $1.08 per share, compared to $117.3 million, or $1.05 per share, in the third quarter of 2016.
“Current Warn Notices,” Government of Indiana, June 2, 2017.
“Cintas Corporation Completes Acquisition of G&K Services, Inc.,” Cintas Corporation, March 21, 2017.
“Cintas Corporation Announces Fiscal 2017 Third Quarter Results,” Cintas Corporation, March 22, 2017.