Cintas

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Cintas Corporation
TypePublic
IndustryService
Founded1929; 92 years ago (1929) (as Acme Industrial Laundry Company)
FoundersRichard (Doc) Farmer
Headquarters,
U.S.
Key people
  • Richard T. Farmer (Chairman Emeritus)
  • Scott Farmer (CEO and Chairman)
  • Todd Schneider (Executive Vice President and COO)[1]
  • Mike Thompson (Executive Vice President and CAO)[2]
Revenue
  • Increase US$7.09 billion (2020)[3]
  • Increase US$4.476 billion (2015)
  • Increase US$1.16 billion (2020)[3]
  • Increase US$701.36 million (2015)
  • Increase US$876 million (2020)[3]
  • Increase US$430.62 million (2015)
Total assets
  • Increase US$7.67 billion (2020)[4]
  • Increase US$4.192 billion (2015)
Total equity
  • Increase US$3.24 billion (2020)
  • Increase US$1.932 billion (2015)
Number of employees
40,000[5] (2020)
Websitewww.cintas.com
Footnotes / references
[6][7]
Cintas delivery truck in Ann Arbor, Michigan
Cintas delivery truck in Markham, ON

Cintas Corporation (/ˈsɪntɑːz/) is an American company, with headquarters in Cincinnati, Ohio, that provides a wide range of products and services that help companies keep their facilities and workspaces clean and safe. The company provides uniforms, mats, mops, cleaning and restroom supplies, first aid and safety products, fire extinguishers and testing, and safety courses.[8] Cintas is a publicly held company traded on the Nasdaq Global Select Market under the symbol CTAS and is a component of the Standard & Poor's 500 Index.

The company is one of the largest in the industry with over 40,000 employees in 2020.[5] In 2020, the company reported $7.09 billion in total revenue.[3]

History[edit]

Early company years[edit]

Cintas Corporation began in 1929 as the Acme Industrial Laundry Company by Richard (Doc) Farmer. He collected chemical-soaked rags from factories and washed and returned them to customers for a fee. In the early 1940s, rags were replaced by shop towels—which are uniform in size and shape and much more absorbent than old rags—and tablecloths. By then, the company’s name had changed to Acme Wiper and Industrial Laundry.[citation needed]

His grandson, Richard "Dick" Farmer, joined the family business in 1956 after graduating from Miami University in Oxford, Ohio. Acme had just 15 employees at the time. Dick Farmer helped uniform rental sales increase from $300,000 in 1959 to $847,000 in 1963.[citation needed] He became CEO of the company in 1968.[9] He then[when?] put together a business plan to open small uniform rental plants all over the United States. The first opened in Cleveland in October 1968. In 1972, the company changed its name to Cintas and then went public in 1983.[10]

Farmer also tried products that were new at the time, such as fabrics that resisted wrinkles and stains, to grow the company to an almost 30 percent market share in uniforms. Cintas' recent[when?] growth has been primarily through its acquisition of more than 220 companies, eliminating overheads and cutting costs. Since its inception, Cintas has bought itself into markets such as first aid and safety, fire protection, facility services, and tile and carpet cleaning.[citation needed]

Scott Farmer, seen here in 2018, became the CEO of Cintas in 2003.

In July 1997, Dick Farmer's son Scott Farmer, who has been employed at the company since 1981, became president and chief operating officer.[11]

2000s to present[edit]

In 2002, Cintas acquired a number of companies, including uniform rental company Omni Services, and first-aid companies Petragon, American First Aid, and Respond Industries.[12][13]

In 2003, Cintas acquired Kamp Fire Equipment, a distributor of fire safety products and services.[13][14][15]

UNITE HERE was the subject of a ruling that was subsequently upheld by the U.S. Court of Appeals for the Third Circuit. The court ruled that the labor union violated the privacy of thousands of Cintas employees in Pennsylvania, by illegally obtaining their license plate numbers in order to access their home addresses and other personal information.[16][17]

Another investigation involved the March 2007 death of a Tulsa, Oklahoma employee. Both unions and several Members of Congress called for stricter health and safety standards at Cintas laundry facilities.[18][19]

Phillip Holloman became President and COO in 2008.[20] Dick Farmer then became chairman emeritus, and Bob Kohlhepp became Chairman of the Board.[13][9]

In 2015, Cintas acquired Zee Medical from McKesson Corporation for approximately $130 million.[21]

In 2016, CEO Scott Farmer became chairman of the board.[11]

In 2017, Cintas made their largest acquisition with G&K Services for $2.2 billion.[22]

Cintas has been included on the Fortune 500 list three years in a row, in 2018, 2019 and 2020.[23]

Products[edit]

As of 2020 uniform rental and service of facilities comprises around 80% of the revenue.[24]

References[edit]

  1. ^ "Todd M Schneider". Bloomberg.
  2. ^ "Michael L. Thompson". The Org.
  3. ^ a b c d "Cintas Corporation (CTAS)". Yahoo! Finance.
  4. ^ "Total assets of Cintas from FY 2012 to FY 2020". Statista.
  5. ^ a b "Cintas: Number of Employees 2006-2020". Macrotrends.
  6. ^ "CINTAS CORP 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. July 30, 2013.
  7. ^ "CINTAS CORP 2014 Q3 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. April 9, 2014.
  8. ^ "The Service Professionals". Cintas. Retrieved July 8, 2016.
  9. ^ a b "Farmer family". Forbes. 2015. Retrieved February 6, 2020.
  10. ^ "Cintas Company Timeline". Cintas Corporation. Retrieved June 1, 2020.
  11. ^ a b "Scott D Farmer, Cintas Corp". Bloomberg Markets. Bloomberg L.P. Retrieved February 6, 2020.
  12. ^ "Facilities Solutions - Uniforms, Facilities Services, First Aid & Safety and Fire Protection". OMNIA Partners.
  13. ^ a b c "Timeline". Cintas Cares.
  14. ^ Williams, Lance (March 29, 2004). "heat in fire protection market". Cinncinati Business Courier.
  15. ^ Kostrinsky, Tanya (May 5, 2020). "Value Investing with Legends" (PDF). Columbia.
  16. ^ "High court upholds ruling in Cintas case". Cincinnati.com. April 7, 2009. Archived from the original on October 9, 2012.
  17. ^ Bailey, Jeff (August 11, 2005). "Where Neatness Truly Counts". New York Times.
  18. ^ Sewell, Dan (March 17, 2007). "Federal court: Cintas policy violated rights". The Cincinnati Post (Associated Press). E. W. Scripps Company. Archived from the original on March 25, 2007.
  19. ^ "House Leaders Want Cintas Inquiry". September 28, 2007. Archived from the original on September 28, 2007.
  20. ^ McCauley, Byron (July 15, 2018). "Cintas' trailblazing COO Phillip Holloman steps down after 22 years". Cincinnati Enquirer.
  21. ^ "Cintas Corporation Announces Agreement to Purchase ZEE Medical". Business Wire. Retrieved January 24, 2019.
  22. ^ "Exhibit 99.1". Sec.Gov.
  23. ^ "Cintas". Fortune.
  24. ^ Sharma, Asit (December 24, 2019). "Cintas Is Making Progress in Three Vital Areas". The Motley Fool. Retrieved January 18, 2020.

External links[edit]