Uniform retailer Cintas makes $5.2 billion bid for UniFirst (updated)

Cintas

22/12/2025 13:06

Adds UniFirst's response in paragraph 3, updates shares in paragraph 4

Dec 22 (Reuters) - Uniform retail firm Cintas CTAS.O said on Monday it has made a fresh $5.2 billion offer to buy smaller rival UniFirst UNF.N, its third attempt to clinch a deal, as it seeks to expand scale and improve service efficiency.

Cintas has proposed $275 per UniFirst share in cash, representing a 53% premium over the stock's closing price on December 12 when the latest offer was made.

UniFirst said its board was carefully reviewing and evaluating the offer with the help of independent financial and legal advisors.

Shares of UniFirst jumped nearly 20% to $203 in morning trading, while Cintas shares were up 2.3%.

The latest bid follows two failed approaches, including one earlier this year that UniFirst rejected and Cintas later withdrew, and an initial offer in 2022.

While the price remains unchanged from its January offer, Cintas said it has done extensive regulatory work and is confident of securing approvals. The proposal also includes a $350 million reverse termination fee if the deal fails to win clearance.

Cincinnati-based Cintas, valued at about $75 billion, supplies uniforms and workplace essentials and said the tie-up would give the combined company access to more than 1 million customers across the United States and Canada.

"Recent market commentary confirms that many UniFirst shareholders, including several of the company's largest institutional investors, recognize the value that a combination would deliver and share our belief that we are stronger together than we are apart," Cintas CEO Todd Schneider said.

The deal will be funded through cash on hand, committed credit lines and other financing sources, Cintas added.

The Wall Street Journal was first to report on the new offer.

 (Reporting by Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore)

 ((Sanskriti.Shekhar@thomsonreuters.com))