News March 25, 2025
Cintas Ends $5.3 Billion Acquisition Bid for UniFirst
The Counselor Top 40 distributor said it couldn’t hold substantive talks with UniFirst, a key competitor in the uniforms space, on what would have been its biggest acquisition ever.
Key Takeaways
• Closing the Book: Counselor Top 40 distributor Cintas (asi/162167) has ended its $5.3 billion acquisition bid for UniFirst.
• No, Thanks: UniFirst rejected what it characterized as the unsolicited proposal, saying it wasn’t in the best interest of shareholders.
• Financial Growth: Both publicly traded companies increased sales in their most recent full fiscal years.
Cintas (asi/162167) is calling quits on its pursuit of UniFirst.
The Counselor Top 40 promotional products distributor, a publicly traded corporation best known for its uniform rental and facility services, announced March 24 that it has ended attempts to acquire UniFirst – a Wilmington, MA-headquartered publicly traded corporation that manufactures, sells and rents uniforms and protective clothing.
The deal would have been Cintas’ largest acquisition ever – with the total value of the purchase put at about $5.3 billion, or what Cintas said was $275 per outstanding common and Class B share. Still, UniFirst rebuffed Cintas’ advances and wasn’t interested in being sold. Talks never really got off the ground.
“We have engaged with UniFirst and its advisors over the past several weeks in an effort to reach a mutual agreement regarding a transaction that we believe offers tremendous value for customers and shareholders,” said Cintas President/CEO Todd Schneider. “While we continue to believe in the merits of a transaction, we were unable to have substantive engagement with UniFirst regarding key transaction terms. We do not believe further discussions are warranted at this time.”
In January, Cintas publicly revealed that it was trying to acquire UniFirst – a tactic that, in essence, sought to pressure UniFirst to come to the table. Cintas noted that UniFirst had previously rejected bids twice and didn’t engage in discussions regarding a potential deal.
The spotlight, however, didn’t compel UniFirst to reconsider. The UniFirst Board of Directors called Cintas’ proposal “unsolicited, non-binding and highly conditional.”
“While we continue to believe in the merits of a transaction, we were unable to have substantive engagement with UniFirst regarding key transaction terms.” Todd Schneider, Cintas (asi/162167)
“The board conducted a careful review of the unsolicited proposal and determined that it is not in the best interests of UniFirst, its shareholders and other stakeholders,” the UniFirst directors said in a statement. “In making its determination, the board considered the offer price, execution and business risks, feedback from some of the company’s largest shareholders by voting power, and the company’s future growth and value creation opportunities.”
UniFirst’s stock was trading down about 4% on March 25 compared to five days ago. Cintas’ stock was trading roughly flat compared to five days ago.
Based on estimated 2023 North American promotional product revenue of $218.6 million, Cintas ranked 13th on Counselor’s most recent list of the largest distributors in the industry.
Cintas has consistently been generating gains in sales and earnings. The firm increased total company sales 8.9% on an annual basis to $9.6 billion during its 2024 fiscal year, which ended May 31. Sales and earnings were also up in Q1 and Q2 of the firm’s 2025 fiscal year. Cintas’ next quarterly earnings report is due out this week.
In its most recent fiscal year, which ended with August, UniFirst generated revenue of $2.427 billion, a year-over-year increase of 8.7%. The firm plans to announce fiscal year second quarter/half-year results on April 2. UniFirst this week is also breaking ground on a 109,000-square-foot expansion of its distribution center in Owensboro, KY.