Cintas Proposes Acquisition of UniFirst Corporation for $275 Per Share in Cash

Cintas Corporation (NASDAQ:CTAS) has revealed its intentions to acquire UniFirst Corporation in a recent press release on January 7, 2025. The proposed acquisition encompasses all of UniFirst’s outstanding common and class B shares, with an offer set at $275.00 per share.

The proposal, addressed to UniFirst’s Board of Directors, aims to facilitate a transaction valued at approximately $5.2 billion. The $275 per share offer marks a substantial 48% premium over UniFirst’s ninety-day average closing price and a notable 54% premium over the closing price communicated in a previous indication of interest on February 7, 2022, at $255 per share.

Cintas has gone a step further by publically releasing six letters exchanged between the two companies since November 8, 2024, which details the progression and discussions surrounding the proposal. Among these correspondences is Cintas’ expressed interest in engaging with UniFirst regarding potential synergies, strategic visions, and the operational efficiencies a merger could bring.

BDT & MSD Partners are serving as Cintas’ financial advisors in this endeavor, while Davis Polk & Wardwell LLP stands in as the legal advisor throughout the process.

The press release accompanying the proposal points out the forward-looking statements contained within, emphasizing the risks and uncertainties investors should be mindful of when considering such propositions. These risks include but are not limited to, the uncertain nature of successfully consummating a potential transaction, regulatory approvals, and the potential impact on market value.

For further insight, Cintas has issued a comprehensive range of documents, including the proposal itself, letters of correspondence, and detailed assurances to stakeholders about the diligence, timing, regulatory aspects, and financing of the proposed acquisition.

Investors and stakeholders are advised to stay informed about this developing proposal and its potential impact on both companies. Further updates and formal responses from UniFirst Corporation are eagerly awaited, as stakeholders anticipate the outcome of this significant development in the business landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cintas’s 8K filing here.

Cintas Company Profile

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.