Cintas Seeks to Acquire UniFirst

CINCINNATI -- Cintas Corporation, a provider of products that keep facilities and employees clean and safe is looking to acquire competitor UniFirst for $275 per share in cash.
 
The proposal implies a total value for UniFirst of approximately $5.3 billion and offers UniFirst shareholders a 46 percent premium to UniFirst’s ninety-day average closing price as of January 6, 2025.

The proposal was initially delivered to the UniFirst Board on November 8, 2024. Despite Cintas’ multiple attempts to engage in a collaborative discussion, including a willingness to identify potential sources of additional value that would enable Cintas to increase its offer price and the Company’s openness to exploring alternative forms of consideration for the benefit of UniFirst shareholders, UniFirst’s Board has refused to meet.

“We firmly believe in the compelling strategic fit between our two companies, and our offer would deliver immediate and compelling value to UniFirst shareholders,” said Todd Schneider, President and CEO of Cintas. “The combination would also amplify the benefits of Cintas and UniFirst’s ongoing technology investments to drive growth and benefit our collective customers and employee-partners.”

While Cintas says it would have preferred to have discussions with UniFirst in private, this is the second time in nearly three years that UniFirst has refused constructive attempts to engage on an extremely compelling offer.

“Our decision to publicize our proposal reflects our conviction in the merits of the combination, the value we place on UniFirst and its team and belief that UniFirst shareholders should know the value they stand to realize,” said Schneider. “We call on the UniFirst Board, its controlling shareholders and management team to immediately engage with us to reach a mutually acceptable definitive agreement that delivers the full value of this combination for shareholders and other stakeholders.”

The combined company would provide innovative products and outstanding service to well over one million business customers across the US and Canada. Cintas has an exceptional track record of organic growth, and the combination with UniFirst would provide additional processing capacity and greater route density, which would further enhance customer service.

Cintas says a combination of the two companies would accelerate the benefits of their investments in technology and create opportunities to leverage the combined infrastructure and route networks.

Together, Cintas and UniFirst would also be better able to meet the challenges posed by continued and increasing competition from much larger and better-capitalized companies focused on increasing their garment and facility solutions and investing in last mile fleets.

UniFirst one of North America’s largest uniform rental and facility service companies, providing uniforms, protective clothing and custom corporate image apparel and facility service programs to businesses in diverse industries.

Like UniFirst, Cintas has a nearly century-long heritage and deep family roots, and Cintas greatly respects the Croatti family and UniFirst team and the way they serve their customers. An enduring value at Cintas is the importance of its employees, whom it calls “partners,” sharing collectively in the Company’s success. Cintas would welcome UniFirst employees and ensure opportunities to develop and prosper within Cintas.

For more, go to cintas.com or unifirst.com.