G&K plans $6 a share dividend
- Article by: STEVE ALEXANDER
- Star Tribune
- April 4, 2012 - 9:37 AM
G&K Services of Minneapolis has declared a special dividend of $6 a share, or a total of about $113 million.
The dividend will be paid April 27 to shareholders of record on April 13.
The dividend will be funded through the company's revolving credit facility. In order to maintain the value of stock options following the dividend, G&K said it would take a non-cash $2 million charge in its third-quarter. The charge is expected to reduce third-quarter and full-year earnings per share by 7 cents.
In addition to the special dividend, G&K said it will boost its regular quarterly cash dividend by 50 percent, to 19.5 cents a share.
Steve Alexander • 612-673-4553
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