Toronto; March 19, 2014 – Shred-it International Inc. (“Shred-it”) today announced that it will combine with the document destruction business of Cintas Corporation (“Cintas”) (Nasdaq: CTAS) to create a newly formed company that will operate under the name Shred-it. The combined company will be 58% owned by the existing shareholders of Shred-it, and 42% owned by Cintas.
The company will be headquartered in Oakville, Ontario and maintain a U.S. head office in Cincinnati, Ohio. Vince De Palma, current Shred-it President and CEO, will remain in this role for the newly combined company. Karen Carnahan, currently the President of Cintas’ document destruction division, will become Chief Operating Officer. Other key leaders from both Shred-it and Cintas will form the management team of the new organization.
“When Shred-it began as a one truck operation in 1988, its founder Greg Brophy had set his sights on becoming a global leader in information destruction,” said Vince De Palma, President and CEO of the combined company. “We have carried on this vision, and with this combination, we will solidify our position as a leading global player, whose primary focus is on providing secure information destruction services. We will continue to deliver information destruction services to meet the growing demand for corporate information protection.”
The combined company will have revenues in excess of US$600 million – employ over 5,000 associates, operate a fleet of over 2,000 trucks, and service over 300,000 customers each year. Mr. De Palma added, “Other key benefits of the transaction include: a greatly expanded geographic footprint and the largest sales-force of any information destruction company. Additionally, Shred-it will have a comprehensive service offering, as a result of combining Cintas’ plant-based operations with Shred-it’s mobile information destruction fleet.”
The transaction, which was approved by both Shred-it and Cintas’ Board of Directors, is expected to close before May 31, 2014, subject to customary and other closing conditions.
Shred-it is a world-leading information security company providing document destruction services that ensure the security and integrity of our clients' private information. The company operates 140 locations 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.
For more information, please visit www.shredit.com.
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 traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of the Standard & Poor’s 500 Index.
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