Cintas Agrees To Sell Shred-it Investment To Stericycle

(RTTNews) - corporate uniform supplier Cintas Corp. (CTAS) said Wednesday that it has agreed to sell its investment in Shred-it International Inc. to Stericycle, Inc. (SRCL) for consideration of about $550 million to $600 million before taxes.

The deal is expected to close in the fourth quarter of 2015. Upon closing of the transaction, Shred-it will become a wholly owned subsidiary of Stericycle.

During April 2014, Cintas formed the Shred-it partnership with Birch Hill Equity Partners and other shareholders of Shred-it International to combine Shred-it's business with Cintas' information destruction business. Under the partnership agreement, Cintas received $180.0 million in cash at the closing of the deal and retained 42% ownership of Shred-it. In May 2015, Cintas also received a $113.4 million dividend from Shred-it.