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Cintas to Acquire UniFirst in $5.5 Billion Cash-and-Stock Deal

The companies project $375 million in cost synergies over four years after combining their North American networks.

Overview

  • UniFirst shareholders will receive $155 in cash plus 0.7720 Cintas shares per share, valuing the company at $310 per share, or about 8.0x trailing EBITDA.
  • Both boards unanimously approved the merger, the Croatti family pledged voting support, and closing is targeted for the second half of 2026 pending regulatory and shareholder approvals.
  • The combined operation expects to serve roughly 1.5 million customers by integrating route networks, processing capacity, and technology platforms.
  • Cintas plans to fund the cash portion with existing liquidity, committed credit facilities, and secured bridge financing, and agreed to a $350 million reverse termination fee if regulators block the deal.
  • UniFirst shares jumped about 8.9% in pre-market trading after the announcement, and Cintas reported preliminary fiscal Q3 revenue of $2.84 billion, up 8.9% year over year.