UniFirst Stock Surges on Renewed $5.2B Takeover Bid from Cintas
The all-cash offer of $275 per share represents a 61.7% premium, as the industry giant revives its pursuit of its smaller rival after previous rejections.
Shares of UniFirst Corp. (NYSE: UNF) skyrocketed in trading Tuesday after industry leader Cintas Corporation (NASDAQ: CTAS) announced a renewed, unsolicited proposal to acquire its competitor for $275.00 per share in an all-cash deal.
The offer values UniFirst at approximately $5.2 billion and represents a staggering 61.7% premium over the company's closing price of $170.16 on Friday. The news sent UniFirst's stock soaring towards the offer price, while Cintas shares saw a modest dip in early trading.
This marks the latest chapter in a prolonged pursuit by Cintas to acquire its smaller, yet significant, competitor in the corporate uniform and facility services market. The move revives a takeover saga that appeared to have ended in March 2025, when Cintas publicly stated it had terminated discussions following a lack of engagement from UniFirst's board.
Cintas had previously made a non-binding proposal at the same $275-per-share price in November 2024, which UniFirst's board unanimously rejected, stating at the time that the offer was "highly conditional" and not in the best interests of its shareholders.
A combination of the two companies would significantly consolidate the North American uniform rental industry. Cintas is the clear market leader, holding an estimated 31-40% of the market. UniFirst is a strong competitor, with various analyses placing its market share between 13% and 18%. An acquisition would give Cintas control of roughly half the market, creating a dominant force and leaving smaller players like Aramark to compete in its wake.
The strategic rationale for Cintas is clear: absorbing a major competitor would not only expand its customer base but also offer substantial opportunities for operational synergies, from route efficiencies to administrative cost savings. Headquartered in Wilmington, Massachusetts, UniFirst has a strong presence across the United States, Canada, and Europe that would complement Cintas's extensive network.
However, the path to a deal faces significant hurdles, chief among them being the historical reluctance of UniFirst's board. The company's prior rejections suggest that a hefty premium alone may not be enough to secure a friendly agreement. Investor focus will now turn to the response from UniFirst's leadership and the influence of the founding Croatti family, which maintains a significant interest in the company.
Should UniFirst's board remain opposed, Cintas would have to decide whether to initiate a hostile takeover attempt or walk away once more. Furthermore, a successful merger would almost certainly attract close scrutiny from antitrust regulators in the Department of Justice, given the substantial increase in market concentration it would produce.