Cintas Corporation CTAS recently acquired ZEE Medical — a van-based provider of occupational first aid and safety products, training and services, for approximately $130 million in cash.
The strategic move by the company is aimed to expand its presence in North America in the first aid, safety, training and emergency products. This acquisition is expected to be accretive to future earnings and also likely to generate annual revenue of $110 million to $120 million. With this acquisition, the company identifies additional product and service opportunities for its current and future customers to expand its geographical footprint.
In concurrence with its fourth-quarter fiscal 2015 results, Cintas issued its initial guidance for fiscal 2016. The company expects fiscal 2016 revenues in the range of $4.70 billion to $4.78 billion, up 5%–6.8% year over year. Earnings are expected to be within $3.74–$3.83 per share, which represents a year-over-year improvement of 11.6%–14.3%. The updated fiscal 2016 guidance to portray the effect of the ZEE Medical acquisition is likely to be provided with the first-quarter results in September.
Cintas provides specialized services to businesses of all types throughout North America. The company designs, manufactures, implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products and first aid and safety products for diversified businesses. Cintas operates under two operating segments, Rental Uniforms and Ancillary Products, and Other Services.
Cintas currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look now include AirMedia Group Inc. AMCN, The Interpublic Group of Companies, Inc. IPG and Omnicom Group Inc OMC, each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment