No Deal: Cintas Abandons UniFirst Proposal After Talks Hit A Wall

Unifirst Corporation UNF shares are trading lower premarket on Tuesday.

On Monday, Cintas Corporation CTAS disclosed ending discussions regarding its proposal to acquire UniFirst for $275 per share in cash.

The offer represented a 46% premium over UniFirst’s 90-day average closing price as of January 6, 2025, the last trading day before the proposal was publicly disclosed.

Todd Schneider, President and Chief Executive Officer of Cintas, said, “We have engaged with UniFirst and its advisors over the past several weeks in an effort to reach a mutual agreement regarding a transaction that we believe offers tremendous value for customers and shareholders.”

”While we continue to believe in the merits of a transaction, we were unable to have substantive engagement with UniFirst regarding key transaction terms. We do not believe further discussions are warranted at this time.”

Notably, in January, Cintas submitted the acquisition proposal and UniFirst rejected the proposition, claiming it was not in the best interests of the company and its shareholders.

UniFirst’s cash, cash equivalents, and short-term investments totaled $181.0 million as of November 30, with no long-term debt outstanding.

Price Action: UNF shares are down 10.2% at $177.50 premarket at the last check Tuesday.

Read Next:

• Generac Poised To Benefit From Blackouts, Declining Grid Reliability: BofA Analyst

Image via Shutterstock.