G&K: Sale of 2 businesses for $6.6M ends its restructuring

  • Updated: January 6, 2014 - 9:10 PM

G&K Services said Monday that it has sold two business units for $6.6 million, and will take a $13 million pretax, non-cash charge in connection with the transactions.

The Minnetonka-based maker of industrial clothing and uniforms said it sold its direct sale business and its operations in Ireland as the last elements of a restructuring that it began in 2009.

“We expect these transactions will improve G&K’s overall profit margins and return on invested capital,” said CEO Douglas Milroy.

The company said that while it is selling its direct sale business, it will continue to operate its direct sale catalog business.

The two divested operations contributed $42 million to revenue in 2013, the company said. G&K will update its fiscal 2014 revenue and earnings guidance when it reports its second quarter earnings on Jan. 28.

Steve Alexander

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