G&K Services, Inc.
NASDAQ : GKSRA

G&K Services, Inc.

October 19, 2005 07:30 ET

G&K Services Announces Acquisition in Canada and U.S.; Acquisition Expands G&K's Canadian Leadership Position; Adds Cleanroom Business

MINNEAPOLIS--(CCNMatthews - Oct 19, 2005) -

G&K Services Canada, Inc., a leading provider of industrial laundry services in Canada and a subsidiary of G&K Services, Inc. (Nasdaq:GKSRA), today announced the acquisition of certain assets from Glis, a division of Glascar, Ltd, and Glis Laundries USA, Inc. Glis is a textile laundry company serving southwest Ontario and Detroit, Michigan. Glis Laundries USA, Inc. operates a cleanroom business servicing customers in St. Louis, Missouri.

"We are pleased to announce this acquisition," said Robert Wood, president, G&K Services Canada, Inc. "The addition of Glis strengthens our presence in these markets and leverages our existing capacity in Canada. We welcome Glis' customers and employees to G&K."

The acquisition, which adds approximately $6.0 to $7.0 million (U.S.) in annual revenue, expands G&K's uniform rental and facility services business in Canada. The acquisition also increases G&K's cleanroom business in North America.

"We continue to seek strategic acquisitions across North America," said Richard Marcantonio, G&K's president and chief executive officer. "In Canada, we have significantly enhanced our leadership position through market expansion activities and acquisitions."

Due to a confidentiality agreement with the sellers, the purchase price cannot be disclosed. No further details were made available.

Safe Harbor for Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the "Act") provides companies with a "safe harbor" when making forward-looking statements as a way of encouraging them to furnish their shareholders with information regarding expected trends in their operating results, anticipated business developments and other prospective information. Statements made in this press release concerning our intentions, expectations or predictions about future results or events are "forward- looking statements" within the meaning of the Act. These statements reflect our current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectation, which could be material and adverse. Given that circumstances may change, and new risks to the business may emerge from time to time, having the potential to negatively impact our business in ways we could not anticipate at the time of making a forward-looking statement, you are cautioned not to place undue reliance on these statements, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Some of the factors that could cause actual results or events to vary from stated expectations include, but are not limited to, the following: unforeseen operating risks; the effects of overall economic conditions and employment; fluctuations in costs of insurance and energy; acquisition integration costs; the performance of acquired businesses; preservation of positive labor relationships; competition, including pricing, within the corporate identity apparel and facility services industry; and the availability of capital to finance planned growth. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for the fiscal year ended July 2, 2005.

About G&K Services, Inc.

Headquartered in Minneapolis, Minnesota, G&K Services, Inc. is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. G&K operates over 140 processing facilities and branch offices, serving more than 160,000 customers.

Contact Information

  • G&K Services, Inc.
    Jeffrey L. Wright, 952-912-5500
    or
    Glenn L. Stolt, 952-912-5500
    or
    Shayn R. Carlson, 952-912-5500
    or
    G&K Services Canada, Inc.
    Media Contact:
    Robert Wood, 905-677-6161