Cintas (CTAS) Stock Acquires UniFirst (UNF) in $5.5 Billion Deal

TLDR

• Cintas agreed to buy UniFirst for $310 per share in cash and stock, valuing the deal at $5.5 billion
• UniFirst rose ~7.4% in premarket trading; Cintas fell ~1.6%
• UniFirst shareholders get $155 cash plus 0.7720 Cintas shares per share held
• The deal is expected to deliver $375 million in operating cost savings within four years
• Cintas reported preliminary Q3 revenue of $2.84 billion, up 8.9% year-over-year

Cintas Corporation agreed to acquire rival UniFirst Corporation in a deal worth $5.5 billion, ending a multi-year pursuit that began back in 2022.

Under the terms, UniFirst shareholders will receive $155 in cash and 0.7720 Cintas shares for each UniFirst share they hold — equating to $310 per share in total.

UniFirst jumped 7.4% to $277 in premarket trading on Wednesday. Cintas dropped 1.6% on the news.

Cintas Corporation, CTAS

Cintas first made an “indication of interest” in 2022 at $255 per share. It came back in November 2024 with an offer of $275 per share, before ultimately taking the proposal public.

The deal didn’t happen in a vacuum. Activist investor Engine Capital had been pushing UniFirst hard, running a proxy battle and urging the board to explore “value-maximizing alternatives.” It published an open letter in December calling for a special committee of independent directors to review options.

What Cintas Gets Out of This

Cintas currently holds an estimated 27% to 43% market share in uniform rental. UniFirst holds around 12% to 14%. Combining the two would create a dominant force in the sector.

The deal is expected to generate approximately $375 million in operating cost savings within four years. Cintas plans to achieve this through better route efficiency, consolidated facilities, and improved purchasing power.

The transaction is subject to UniFirst shareholder approval and other standard conditions, with a closing expected in the second half of 2026.

Cintas Q3 Numbers Also Drop

Alongside the deal announcement, Cintas released preliminary fiscal third-quarter results.

The company reported revenue of $2.84 billion for the quarter, up 8.9% from the same period a year ago. Organic revenue — stripping out acquisitions and foreign exchange effects — grew 8.2%.

Cintas is scheduled to report full earnings on March 25.

The $310-per-share acquisition price represents a steep premium compared to where UniFirst was trading before Cintas’s first public advance. UniFirst’s 52-week range sat between $147.66 and $276.60, putting the offer at the very top end of its recent trading history.

The deal also includes a $350 million reverse termination fee, payable by Cintas to UniFirst if regulators block the transaction — a sign of confidence from the acquirer that the deal will clear antitrust review.

Cintas trades with a P/E ratio of 56.08, while UniFirst was trading at a P/E of 36.66 before the announcement.

The next formal milestone is UniFirst shareholder approval, which has not yet been scheduled.

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