Cintas Corporation (CTAS.O) announced on Monday that it has officially ended its discussions to acquire UniFirst (UNF.N), the well-known uniform supplier, in a proposed deal valued at $5.3 billion. The termination of the talks resulted in a 7% drop in UniFirst’s stock during after-hours trading.
Cintas, which had pursued the acquisition for several months, expressed that while it still believed in the strategic benefits of the deal, it was unable to reach an agreement with UniFirst on key terms. “Despite our continued interest, we were unable to engage substantively with UniFirst regarding critical aspects of the transaction,” said Todd Schneider, CEO of Cintas.
The move comes after UniFirst rejected Cintas’ original offer in early January, which included $275 per share in cash. The company remained confident in its independent growth strategy, resisting multiple attempts by Cintas to engage further, including offering a higher bid and exploring alternative proposals.
This development adds to a series of rejections that Cintas had faced from UniFirst, which made it clear it was not interested in any potential takeover. While Cintas had hoped to secure a merger that would strengthen both companies’ positions in the uniform supply industry, UniFirst’s resistance ultimately led to the termination of discussions.
In the aftermath of the announcement, shares of UniFirst saw a notable dip, reflecting market sentiment about the failed deal. On the other hand, Cintas shares showed little movement after the news, as the company is scheduled to report its third-quarter financial results on Wednesday.
This marks the end of a high-profile acquisition attempt, leaving both companies to continue their operations independently for the foreseeable future. Cintas’ focus will likely shift toward its ongoing business strategy, while UniFirst remains firm in its path as a standalone entity.
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