Cintas Corporation announced that it submitted a proposal to the Board of Directors of UniFirst Corporation to acquire all outstanding common and class B shares of UniFirst for $275.00 per share in cash. The Proposal implies a total value for UniFirst of approximately $5.3 billion and offers UniFirst shareholders a 46% premium to UniFirst’s ninety-day average closing price as of January 6, 2025, according to a news release.
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.
Todd Schneider, President and Chief Executive Officer of Cintas, said, “We firmly believe in the compelling strategic fit between our two companies, and our offer would deliver immediate and compelling value to UniFirst shareholders. 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 we would have preferred to have discussions with UniFirst in private, this is the second time in nearly three years that UniFirst has refused our 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. 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.”
According to the release, the combined company would provide innovative products and outstanding service to well over 1 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.
