Workwear peddler models post-inflation M&A look

Cintas

10/01/2025 17:42

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, Jan 10 (Reuters Breakingviews) - Cintas
unveiled its unsolicited $5 bln bid for rival UniFirst, a
healthy 62% premium. The suitor’s higher profitability and
valuation will help it pile on pressure. It’s also a deal
template that heavyweights in other industries are likely to
follow as pricing power wanes.

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    CONTEXT NEWS
    Cintas, which sells and cleans workplace uniforms, said on
Jan. 7 that it had submitted a cash offer to buy rival UniFirst
for $275 a share, or $5.3 billion, adding that it first offered
$255 in February 2022.
    UniFirst confirmed it had rejected the offer, which it
described as “highly conditional,” after hearing from some of
its largest shareholders by voting power. The Croatti family has
70% control of the company through its super-voting Class B
shares.

 (Editing by Jeffrey Goldfarb and Pranav Kiran)
 ((For previous columns by the author, Reuters customers can
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Jonathan.Guilford@thomsonreuters.com))