Key Highlights

  • Cintas reaches agreement to purchase UniFirst at $310 per share through a combination of cash and equity, totaling $5.5 billion
  • UniFirst shares climbed approximately 7.4% during premarket hours; Cintas shares declined roughly 1.6%
  • Each UniFirst shareholder receives $155 in cash alongside 0.7720 shares of Cintas stock per share owned
  • The combined entity anticipates achieving $375 million in operational efficiency gains over a four-year period
  • Cintas announced preliminary third-quarter revenue reaching $2.84 billion, representing 8.9% growth compared to the prior year

Cintas Corporation has successfully negotiated the acquisition of competitor UniFirst Corporation through a $5.5 billion transaction, concluding a pursuit that originally launched in 2022.

The agreement structure provides UniFirst shareholders with $155 cash combined with 0.7720 shares of Cintas stock per each share they currently own — reaching a total value of $310 per share.

UniFirst shares surged 7.4% to $277 during Wednesday’s premarket session. Cintas experienced a 1.6% decline following the announcement.


CTAS Stock Card
Cintas Corporation, CTAS

Cintas initially expressed interest in 2022 with a proposal valued at $255 per share. The company returned with an enhanced bid of $275 per share in November 2024, subsequently making the offer public.

External pressure played a significant role. Engine Capital, an activist investment firm, had been advocating strongly for UniFirst’s board to consider strategic alternatives. The firm launched a proxy campaign and released a public letter in December urging the formation of an independent committee to evaluate options that would maximize shareholder returns.

Arnaud Ajdler, founder of Engine Capital, expressed satisfaction with Wednesday’s announcement. “This is the right transaction, at the right price, with the right partner,” he stated, describing it as an agreement that “maximizes value for all UniFirst shareholders.”

Strategic Benefits for Cintas

Cintas commands an estimated market share ranging from 27% to 43% in the uniform rental industry. UniFirst maintains approximately 12% to 14% market presence. The combination positions the merged entity as a powerful leader within the sector.

Management projects the transaction will yield roughly $375 million in annual operating efficiencies within a four-year timeframe. Cintas intends to realize these gains through optimized delivery routes, consolidated operational facilities, and enhanced procurement leverage.

The acquisition remains contingent upon UniFirst shareholder approval along with customary closing conditions, with completion anticipated during the latter half of 2026.

Cintas Reports Preliminary Third-Quarter Performance

Concurrent with the acquisition announcement, Cintas disclosed preliminary financial results for its fiscal third quarter.

The company generated revenue of $2.84 billion during the period, marking an 8.9% increase versus the comparable quarter last year. Organic revenue growth — excluding the impact of acquisitions and currency fluctuations — reached 8.2%.

Cintas has scheduled its complete earnings release for March 25.

The $310-per-share acquisition valuation represents a substantial premium relative to UniFirst’s trading levels before Cintas made its initial public approach. UniFirst’s 52-week trading range extended from $147.66 to $276.60, positioning the offer near the upper boundary of recent valuations.

The agreement incorporates a $350 million reverse termination provision, which Cintas would pay to UniFirst should regulatory authorities prevent the deal’s completion — demonstrating the acquirer’s conviction regarding antitrust clearance.

Cintas currently trades at a price-to-earnings ratio of 56.08, whereas UniFirst held a P/E multiple of 36.66 prior to the announcement.

The upcoming critical step involves securing UniFirst shareholder consent, though a voting date has yet to be established.