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Cintas Revives $275-Per-Share Cash Bid for UniFirst as Board Reviews Offer

The proposal includes a $350 million reverse termination fee to address potential antitrust hurdles.

Overview

  • UniFirst confirmed it received the unsolicited, non-binding $275-per-share offer on Dec. 12 and said its board has engaged independent financial and legal advisors to review it.
  • The all-cash proposal values UniFirst at roughly $5.2 billion and represents about a 64% premium to its recent 90-day average price.
  • Terms outline a 10-month drop-dead date with two possible four-month extensions for regulatory delays, with both parties obligated to seek approvals and litigate if necessary.
  • Cintas pledged a $350 million reverse termination fee payable to UniFirst if the transaction is blocked on antitrust grounds and said it is confident approvals can be obtained.
  • UniFirst shares closed up more than 16% Monday after the disclosure, while Cintas finished about 2% higher, following premarket moves that had UNF up over 30%.