Cintas Corporation — Corporate HQ Expansion
Overview
KMK Consulting (KMKC) partnered with one of the Cincinnati region's Fortune 500 companies, Cintas Corporation (Cintas), on the expansion of their 43-acre corporate headquarters in Mason, Ohio. Since Cintas' initial public stock offering in 1984, the company has grown exponentially. In 1984, Cintas recorded $63M in revenue; $5.5M in profits; and had a market capitalization of almost $111M. In its most recent fiscal year—40 years later—Cintas accounted for $8.8BN in revenue; $1.8BN in profits; and yielded a market capitalization just under $50BN. True to its roots, Cintas determined to reinvigorate its commitment to Southwest Ohio and expand its extensive corporate headquarters. The Mason expansion will enable Cintas to secure a continued path of growth for the company and its employee-partners.
challenges
Cintas' ambitious plan for an expansion of the already-sprawling 43-acre campus included unique challenges requiring innovative solutions. Cintas faced certain obstacles in advancing the project, which included securing incentives, negotiating with multiple states throughout the planning process, identifying creative solutions for Cintas' immediate and long-term operational costs, and leveraging partnerships with the local Mason community.
outcomes
KMKC was enlisted to assist Cintas through this substantial investment. KMKC managed the incentive analysis and review, and undertook negotiations with multiple states working to identify creative solutions to help offset the company's immediate and long-term operational costs. KMKC demonstrated an enterprising spirit by resolving Cintas' ongoing incentive negotiations after exchanges stagnated. The KMKC team also worked actively to organize the project scope, engage the appropriate stakeholders, and identify suitable financial resources to support Cintas' corporate headquarters expansion. In total, the development will create 125 jobs over a period of five years, while retaining nearly 1,300 current positions. The project will also produce additional payroll of $12.5M and require a $10M capital investment from Cintas.
