Cincinnati-based Cintas (asi/162167) is reportedly planning to close a legacy G&K plant in Indianapolis, cutting nearly 70 positions at the facility. Citing a layoff notice filed last week in Indiana, the Indianapolis Business Journal reported that Cintas will eliminate nearly 20 sales representatives and managers, plus other workers at the site. Cintas does expect, though, to move some of the workers to nearby existing facilities by the end of July, the report said.
Last August, Cintas announced the acquisition of G&K Services, a uniform rental company, for $2.2 billion. Following the completion of the merger, G&K Services became a wholly owned subsidiary of Cintas, operating under the G&K brand name. As of 2016, Minnetonka, MN-based G&K Services had more than 170,000 customers in the U.S. and Canada. Its annual revenue at the time of the purchase was approximately $1 billion.
Previously, Cintas said its deal with G&K would result in annual savings between $130 million and $140 million, making plant closures a possibility.