G&K Sells Direct Sale Program, Remaining Cleanroom Business For $6.6 Mln

(RTTNews) - G&K Services, Inc. (GK), a provider of branded uniform and facility services programs, Monday announced the sales of its direct sale program business and its operation in Ireland, the last remaining cleanroom business, for $6.6 million. The company says these sales mark the completion of restructuring efforts initiated in 2009.

CEO of G&K, Douglas Milroy said, "These divestitures allow us to place even greater focus on our rental and direct sale catalog operations, where we see the company's greatest opportunity for future growth"

G&K will recognize non-cash charges of about $13 million, before taxes, because of these transactions, which the company expects to treat it as discontinued operations in future financial reports.

Friday, G&K shares closed at $62.44 on the Nasdaq.