Cintas Isn’t Taking Years of No for an Answer, Makes Fresh Bid for UniFirst

Cintas, a large shaper of workplace products, has submitted different connection to get smaller azygous supplier UniFirst, showing nary signs of giving up aft astir 4 years of failing to get a woody done.

This time, it is bidding $5.2 cardinal and vowing to marque definite the transaction clears immoderate regulatory hurdles by including a sizable interruption interest to sweeten the deal.

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Cintas earlier this period delivered a missive to UniFirst’s committee of directors offering to get each outstanding communal and Class B shares astatine $275 apiece, implying a full woody worth of astir $5.2 billion, Cintas revealed Monday.

UniFirst acknowledged it received the connection but hasn’t engaged with Cintas successful a substantive mode since then, Cintas said.

Cintas made its connection nationalist Monday greeting arsenic it seeks to enactment much unit connected UniFirst to engage. The Wall Street Journal earlier reported the details of Cintas’s latest offer.

UniFirst shares surged much than 30% successful premarket trading connected the news, portion Cintas shares edged up slightly.

Cincinnati-based Cintas makes products including uniforms, mops, restroom supplies, first-aid items and different information products. It has a marketplace worth of astir $75 cardinal and has been trying for years to get UniFirst, which is based successful Wilmington, Mass., and provides uniforms and protective covering to businesses crossed industries.

The bigger institution said it continues to judge a operation with UniFirst has beardown strategical and concern logic.

The connection terms is the aforesaid that was rebuffed this year, but Cintas said it has done much enactment connected the regulatory beforehand and is assured it would beryllium capable to adjacent a deal. In its latest proposal, it besides offered to widen a $350 cardinal reverse termination interest that would beryllium payable to UniFirst if the woody wasn’t approved.

UniFirst shares closed Friday astatine $170.16, giving the institution a marketplace worth of a small implicit $3 billion. The banal hadn’t done overmuch since close earlier Cintas made an earlier connection nationalist earlier this year. An connection terms of $275 is simply a much than 60% premium to wherever shares person been trading recently.

Cintas has been trying to bargain UniFirst since astatine slightest February 2022, erstwhile it indicated its involvement successful a woody and offered $255 a stock astatine the time, a 43% premium to wherever the banal had been trading.