UPDATE 2-Facilities manager Cintas to buy rival G&K in $2.2 bln deal
* Offer of $97.50/share, a 19 pct premium to Monday close
* Cintas price fair price, deal a smart financial move-analyst
* Cintas to boost presence in U.S. Canada, save costs
* Both companies' stocks hit record highs (Adds details, updates shares)
Aug 16 (Reuters) - Cintas Corp, which provides uniforms and related services to a variety of industries, said it would buy smaller rival G&K Services Inc for about $2.2 billion, including debt, to strengthen its presence in North America.
G&K shares jumped as much as 18.5 percent to a record high of $97.35, just shy of Cintas's all-cash offer of $97.50 per share. Cintas stock rose 9.5 percent to an all-time high of $117.65 on Tuesday.
Cintas said the combined company will provide more than 1 million business customers with uniforms, floor care, restroom supplies, first aid and safety products, as well as safety and compliance training.
The company said the deal will give it access to additional processing capacity and increase its route density, which in turn will improve service and significantly lower costs.
Northcoast Research analyst John Healy said Cintas paid a fair price and over time the deal would prove to be a smart financial move. Continued...