) recently extended its operations in Europe by forging a new
commercial partnership with The CALVELEX GROUP, a Portugal-based
clothes manufacturing company. With this strategic tie-up, Cintas
will likely expand its uniform design, production and support
services in Europe to meet the increased demand for corporate
The European uniform business of Cintas comprises
indigenously-built custom-designed uniform for domestic as well
as internationally recognized four- and five-star hotels. By
expanding its geographical footprint, the company intends to
offer inventory, distribution, and manufacturing expertise at the
local level for the first time, which is likely to improve its
profitability in the long run.
At the same time, the move will facilitate a prompt service to
better serve its existing clientele in the U.K., including
Marriott and Four Seasons hotels of
Marriott International, Inc.
) and Hilton Hotels & Resorts.
CINTAS CORP (CTAS): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
To read this article on Zacks.com click here.
Cintas has been facing severe challenges in recent times from the
soft European market and has remained afloat by divesting
profitable businesses and stringent cost-cutting initiatives.
Consequently, this strategic partnership is expected to reap huge
financial benefits for the company.
On the other hand, by partnering Cintas, CALVELEX would strive to
leverage its state-of-the-art technological equipment and
production process, timely delivery schedule, and certified
management system to reach newer heights. With over 28 years of
experience in exporting and in the international textiles
business arena, the company would also bring on board an in-depth
know-how of the manufacturing business for Cintas.
Cincinnati, Ohio-based Cintas provides specialized services to
diversified businesses throughout North America. The company
designs, manufactures, implements corporate identity uniform
programs, and provides entrance mats, restroom supplies,
promotional products and first aid and safety products for over
one million businesses.
We maintain our long-term Neutral recommendation on the stock,
which currently has a Zacks Rank #3 (Hold).