Cintas Takes Third Shot at UniFirst with $5.2B Bid
Cintas renews its hostile takeover attempt for rival UniFirst at $275 per share, offering a 64% premium after years of failed negotiations.
Cintas isn't taking no for an answer.
The uniform and workplace supply company submitted a $275 per share all-cash proposal to acquire UniFirst on December 12, valuing its smaller rival at approximately $5.2 billion. It's the third attempt since February 2022, when Cintas first approached UniFirst with a $255 per share offer.
UniFirst stock jumped nearly 20% Monday to around $203. Cintas gained 2.5%.
The Numbers
The $275 offer represents a 64% premium to UniFirst's 90-day average closing price. Cintas is also offering a $350 million reverse termination fee—payable to UniFirst if regulators block the deal.
That's meaningful downside protection for UniFirst shareholders, and it signals Cintas's confidence in getting the transaction closed.
Years of Rejection
The hostile approach follows what Cintas describes as years of failed engagement. After the initial 2022 overture at $255 per share, Cintas came back with the same $275 offer in January 2025. UniFirst acknowledged that proposal on December 16 but hasn't engaged in "substantive" discussions, according to Cintas.
The pattern is clear: UniFirst's board prefers independence. Whether shareholders agree is another matter—especially with a 64% premium on the table.
Strategic Logic
The combination would create a dominant player in the fragmented workplace uniform and supplies market. Cintas is already the largest operator; UniFirst is a meaningful competitor. Together, they'd have significant pricing power and operational synergies.
For UniFirst, the strategic question is whether remaining independent offers a better path to value creation than $275 in cash. The stock traded around $167 before the latest bid surfaced.
What Happens Next
UniFirst's board is "carefully reviewing and evaluating the proposal" with independent advisors. They have fiduciary obligations to consider the offer seriously, but nothing prevents them from rejecting it again.
Cintas is betting that taking the offer public—and directly to shareholders—changes the dynamics. Hostile bids succeed when shareholders apply pressure. With a 64% premium and a $350 million breakup backstop, Cintas is making that pressure easier to apply.