Uniform Rental Company Case Study Cintas

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The new possible items that Cintas needs to acquire is warehouse fans for the companies that have large open warehouses. I know that this should be about getting funding for a major investment from Cintas, but they are a major company that has no problems investing in items that I could find. As far as problems, I do not see any because of the fact that Cintas works with all types of business because of the type of products that they sell. Since they are in the cleaning business and deal with large companies and some of them are warehouses, not all are air-conditioned. So if Cintas starts selling big warehouse fans, this will give the companies an opportunity to get more of a discount for all of the products that they now buy or rent from…show more content…
As far as risks, Cintas is a large uniform rental company that has been in business since 1965 and has grown tremendously with uniforms and apparel, restroom supplies, and safety mat service, as well as first aid for more than 900,000 customers. Cintas has a long-term portfolio considering that it performs quietly and has the modest dividend and no major activist holdings. If there should be any risk, it would be that the companies have a big turnover and losing their contracts and this would result in the company closing. This in turn will result in Cintas losing significant client accounts and the price of stock will go down. Since Cintas has a large division of first aid, safety and fire protection services will help them to stay afloat. They have approximately $1 billion in revenue between the two companies that they now have and if losing on investing in warehouse fans will not be that much a lost for their business. Cintas share price has tripled over the past 5 years and their cash flow is very sustainable as of now. Cintas gives at least $200 or more from individuals at the company that has been reported to the Federal Election Commission. They give over $162,000 for contributions to the political parties and

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