Cintas Acquires UniFirst in $5.5 Billion Deal

Cintas Corporation (NASDAQ: CTAS) has announced its acquisition of rival UniFirst Corporation (NYSE: UNF) in a cash-and-stock deal valued at approximately $5.5 billion. Under the terms of the agreement, UniFirst shareholders will receive $155 in cash and 0.7720 shares of Cintas stock for each UniFirst share they own, equating to a total of $310 per share. This acquisition marks the culmination of Cintas's multi-year pursuit of UniFirst, which included several previous offers that were rejected.

Cintas Announces Acquisition of UniFirst, a Uniform Manufacturer, in a $5.5 Billion AgreementThe Motley FoolBenzingaCintas to acquire UniFirst for $5.5 billion in cash and stock By Investing.comTransport TopicsReuters

The merger is expected to significantly enhance Cintas's market position in the uniform rental and facility services sector, allowing the combined entity to serve around 1.5 million business customers across North America. Cintas anticipates achieving approximately $375 million in operational cost synergies over the next four years by integrating processing capacities, route networks, and supply chains. Cintas CEO Todd Schneider stated, “By combining, we will be better positioned to drive growth and deliver on efficiencies that will benefit our collective customers and employee-partners.”

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Cintas's interest in acquiring UniFirst dates back to at least 2022, with multiple formal proposals made, including a $5.3 billion bid that was rejected in 2025. The latest offer, which included a $350 million reverse termination fee to protect UniFirst in case of regulatory hurdles, was ultimately accepted by UniFirst's board. The Croatti family, which controls about two-thirds of UniFirst's voting power, has agreed to support the acquisition.

Cintas Announces Acquisition of UniFirst, a Uniform Manufacturer, in a $5.5 Billion Agreement

Cintas reported revenues of approximately $10.3 billion in its last fiscal year, while UniFirst generated around $2.4 billion. The acquisition is projected to be accretive to Cintas's earnings per share by the end of the second full year post-closing. Analysts have noted that the deal represents a multiple of 8.0x run-rate trailing 12 months EBITDA, factoring in anticipated synergies.

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The acquisition has received unanimous approval from both companies' boards of directors. Joseph M. Nowicki, Chairman of the UniFirst Board, expressed satisfaction with the agreement, stating it maximizes value for shareholders and provides opportunities for future growth. Meanwhile, Engine Capital, an activist investor with a stake in UniFirst, endorsed the deal as "the right transaction, at the right price, with the right partner."

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Despite the positive reception from some stakeholders, concerns have been raised regarding the integration of UniFirst into Cintas's operations. Analysts have pointed out that UniFirst is currently undergoing an enterprise resource planning transition, which could complicate the merger and delay anticipated cost savings. Additionally, some investors remain cautious about Cintas's high valuation relative to its earnings.

Cintas Announces Acquisition of UniFirst, a Uniform Manufacturer, in a $5.5 Billion Agreement

The acquisition is expected to close in the second half of 2026, pending regulatory approvals and shareholder consent. As the companies prepare for integration, both will continue to operate independently until the deal is finalized. Cintas is optimistic about the merger's potential to enhance its service offerings and operational efficiencies in the competitive uniform rental market.

Cintas to acquire UniFirst for $5.5 billion in cash and stock By Investing.com