UniFirst Turns Down Cintas' Acquisition Proposal
Deal News | Jan 07, 2025 | Globenewswire
In a recent development, UniFirst Corporation has publicly confirmed that its Board of Directors unanimously rejected an unsolicited, non-binding, and conditional acquisition proposal from Cintas Corporation. The proposal, presented in late 2024, aimed to acquire all outstanding shares of UniFirst for $275 each. UniFirst's decision was guided by a thorough review alongside advisors, considering aspects like the proposed offer price, potential business risks, shareholder feedback, and future growth avenues. The firm, supported by J.P. Morgan Securities and Paul Hastings LLP in financial and legal advisement respectively, remains confident in pursuing its growth strategy independently, underlining their commitment to substantial shareholder value creation.
Sectors
- Textile Services
- Corporate Mergers and Acquisitions
Geography
- United States – Both UniFirst Corporation and Cintas Corporation are major companies headquartered in the United States, making the U.S. the primary geographical focus of the article.
Industry
- Textile Services – UniFirst Corporation operates in the textile services industry, providing uniforms and workwear programs alongside facility services, making this sector relevant due to its central role in the company's operations.
- Corporate Mergers and Acquisitions – The article discusses a merger and acquisition proposal, making this sector relevant in the context of UniFirst's rejection of Cintas’s acquisition offer.
Financials
- $275.00 per share – The offer price per share that Cintas Corporation proposed to pay for UniFirst's outstanding shares.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| UniFirst Corporation | Target Company | Company | UniFirst is a leader in supplying and servicing uniform and workwear programs, known for a broad operational footprint across North America. |
| Cintas Corporation | Bidding Company | Company | A competitor in the uniform and facility services industry, Cintas made a proposal to acquire UniFirst. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | J.P. Morgan served as UniFirst’s financial advisor in evaluating the acquisition proposal. |
| Paul Hastings LLP | Legal Advisor | Company | Paul Hastings provided legal advisement to UniFirst during the review of Cintas's acquisition proposal. |