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Cintas is trying to acquire rival uniform maker UniFirst
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Cintas made another bid for rival uniform and business supplies provider UniFirst, sending its shares soaring Monday.
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The latest offer comes after Cintas said it took steps to address regulatory concerns.
UniFirst (UNF) shares took off Monday after rival Cintas (CTAS) made another bid for the business uniforms and supplies provider.
Shares of UniFirst jumped over 16% to finish near $198 Monday, while Cintas shares climbed about 2% to just under $192.
Cintas said it offered $275 per share in cash for all of UniFirst’s outstanding common and Class B shares, a 62% premium to UniFirst’s closing price on Friday.
Cintas renewed its $275-per-share bid for UniFirst, this time including a large reverse termination fee to address regulatory concerns. The bid offers a steep premium for UniFirst shareholders, and shares of both companies climbed on the news of the revamped proposal.
Cintas made an offer of $275 per share to UniFirst back in January, but was rebuffed amid concerns about regulatory approval. Cintas ended those negotiations in March.
In its latest proposal, the company said it has “undertaken substantial work on the regulatory front and remains confident that there is a clear path to obtaining the regulatory approvals necessary to consummate the proposed transaction.” In addition, Cintas offered a $350 million reverse termination fee to UniFirst if the deal is not approved.
CEO Todd Schneider said Cintas remains “unwavering in our conviction that combining Cintas and UniFirst would deliver considerable benefits for customers, employee-partners and shareholders.”
Shares of UniFirst had soared following Cintas’ January offer, but lost ground in the months since. They were little changed for the year heading into Monday’s session, which left the stock up close to 16% for the year. Cintas shares have climbed 5% in 2025.
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