by Brianna Crandall — April 21, 2014—Facilities and information technology (IT) managers who are considering outsourcing their document-shredding needs may be interested in the recent announcement that business services provider Cintas Corporation and the shareholders of Shred-it International Inc. have agreed to combine Cintas’ Document Shredding business with Shred-it’s Document Shredding business. Under the agreement, the newly formed partnership will be owned 42 percent by Cintas and 58 percent by the shareholders of Shred-it. The combined entity will operate under the Shred-it brand.
“We are confident that this transaction is the best path forward for our Document Shredding customers, our workforce and our shareholders,” said Scott D. Farmer, Cintas’ chief executive officer. “Together, we expect that Cintas Document Shredding and Shred-it will be the industry leader, benefitting from increased scale, resources and strong cash flow to uniquely position the new company to provide world-class information protection services to its customers.”
Following completion of the transaction, the combined company will be led by Vince DePalma, current president and chief executive officer (CEO) of Shred-it, who will become the president and CEO of the newly formed company, and Karen Carnahan, now president and chief operating officer (COO) of Cintas’ Document Management division, who will become COO of the newly formed company.
The transaction, which was approved by Cintas’ Board of Directors, is expected to close before Cintas’ fiscal year end, which is May 31, 2014, subject to the customary closing conditions and various approvals. With regards to Cintas’ global Document Storage and Imaging business, Cintas says the company is currently exploring strategic opportunities for this business and will provide additional details in the future as appropriate.
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, fire protection products and services and document management services for over one million businesses. Cintas is a publicly held company and a component of the Standard & Poor’s 500 Index.
Shred-it International is a global information security company providing document destruction services that ensure the security and integrity of its clients’ private information. Shred-it has operations in 17 countries worldwide, servicing more than 180,000 global, national and local businesses, including the world’s top intelligence and security agencies, more than 500 police forces; 1,500 hospitals; 8,500 bank branches and 1,200 universities and colleges.
