Angelica to sell catalogs to Cintas, Medline

Uniforms, textile rental, and laundry services firm Angelica Corp., which mails the Life Uniform and Image Apparel catalogs, said on March 4 that it is negotiating with two buyers for parts of its manufacturing and marketing business, with agreements set to close later this month.

St. Louis-based Angelica is talking with Cincinnati-based Cintas Corp. for certain non-healthcare assets of the manufacturing and marketing segment. As part of the agreement, Cintas would acquire the hospitality division of the Image Apparel catalog, which markets to hotels, casinos, and similar businesses, says Angelica chief financial officer Ted Armstrong.

Angelica is also in discussion with privately held Medline Industries, based in Mundelein, IL, for the healthcare assets of the business, which include the healthcare portion of the Image Apparel catalog business, Armstrong says.

Armstrong adds that Angelica will retain its Life Uniform business, which has retail stores and a catalog.

Angelica will use $50 million of the proceeds from the sale to pay down debt; it will write down about one-third of the $97 million net book value of the business.