-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IdwytQmMNFBpWugb5lJbRYx8v0RAgnEWi1KglnkwhEE4FCK6PJYpFNxhEQwp5PMT Y2CggST8gBmUJp4vDXI7fA== 0001047469-98-016985.txt : 19980430 0001047469-98-016985.hdr.sgml : 19980430 ACCESSION NUMBER: 0001047469-98-016985 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980425 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980429 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: G&K SERVICES INC CENTRAL INDEX KEY: 0000039648 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 410449530 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-04063 FILM NUMBER: 98604342 BUSINESS ADDRESS: STREET 1: 505 WATERFORD PARK STREET 2: STE 455 CITY: MINNEAPOLIS STATE: MN ZIP: 55441 BUSINESS PHONE: 6125467440 MAIL ADDRESS: STREET 1: 505 WATERFORD PARK STREET 2: STE 455 CITY: MINNEAPOLIS STATE: MN ZIP: 55441 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWEST LINEN CO DATE OF NAME CHANGE: 19681227 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported)........ April 25, 1998 G&K SERVICES, INC. ------------------ (Exact name of registrant as specified in its charter) MINNESOTA 0-4063 41-0449530 - ---------------------------- ----------------------- ---------------------- (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification Number) 5995 Opus Parkway, Suite 500 Minnetonka, MN 55343 (Address of principal executive offices) Registrant's telephone number, including area code ....... (612) 912-5500 ------------------------------------------------------------ (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS. The Registrant's Press Release dated April 27, 1998, which is filed as Exhibit 99.1 to this Form 8-K, is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) EXHIBITS. The following documents are filed as an exhibit to this Form 8-K and is incorporated herein by reference: 99.1 Press Release dated April 27, 1998. -2- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 29, 1998 G&K SERVICES, INC. By /s/ Timothy W. Kuck ----------------------------- Timothy W. Kuck Its Chief Financial Officer -3- EXHIBIT INDEX Page Exhibit No. Description Number - ----------- ----------- ------ 99.1 Press Release -4- EX-99.1 2 EXHIBIT 99.1 Exhibit 99.1 MINNEAPOLIS, April 27 /PRNewswire/ -- G&K Services, Inc. (Nasdaq: GKSRA) announced today it has signed an agreement to sell 10 processing facilities and related branches to Tartan Textile Services, an affiliate of Aurora Capital Partners. The transaction includes seven of the nine linen rental plants acquired by G&K from National Linen Services (NLS), a division of National Service Industries, in July 1997. Another of the linen plants was sold separately last January. The Company announced its intention to divest the linen operations acquired from NLS at the time of the acquisition. The sale also includes three of the 20 uniform rental facilities acquired from NLS. The Company expects to realize approximately $81 million from the transaction, which includes $75 million for the operating assets to be acquired by Tartan and $6 million from the liquidation of working capital used in the businesses being sold. The Company earlier received $2.6 million from the facility sold separately in January. The transaction, which is subject to customary post-closing adjustments, is expected to be completed shortly. Proceeds from the sale will be used to reduce the Company's $333 million outstanding debt. The transaction has been approved by the boards of directors of both companies, and is subject to the satisfaction of various closing conditions. The transaction with Tartan Textile Services will complete the sale of eight of the nine linen facilities acquired from NLS. G&K is continuing to market the remaining linen facility. "After nine months of negotiations with various interested parties, we were able to sell these facilities to a single buyer who intends to continue the operation of these businesses," said Richard Fink, chairman of G&K Services. "The purchase price for these assets is consistent with the values we assigned to them, and we have been able to accomplish this sale within our projected time frame." In addition to seven linen facilities, three uniform rental plants are part of the Tartan Textile Services transaction. "In evaluating our business opportunities, we determined that three NLS uniform rental plants located in western Texas and West Virginia serve markets which are not consistent with our current strategic needs," said Fink. "We are very pleased with this transaction," he added. "It will help us focus our efforts more intensively on the development of the remaining uniform plants we acquired, as well as to achieve a substantial reduction in our debt level." Statements in this press release which are not strictly historical are "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements involve known and unknown risks, which may cause the company's actual results in the future to differ materially from expected results. The statements regarding the sale of assets reflect management's best judgment at the time of issuance, but readers are reminded that not all expectations will, in fact, come to pass, and that all such statements are qualified in their entirety by cautionary statements contained in the most current SEC Form 10-Q. G&K Services is one of North America's largest suppliers of corporate uniform programs. The Company provides services in the United States and Canada from over 125 locations. /CONTACT: Richard M. Fink, Chairman, 612-912-5500, or Timothy W. Kuck, CFO, 612-912-5500, both of G&K Services; or Michael Rosenbaum or Leslie Hunziker, General Info, or Suzy Lynde, Analysts, 312-266-7800, all of the Financial Relations Board/ -----END PRIVACY-ENHANCED MESSAGE-----