Cintas Corporation (NASDAQ: CTAS) and UniFirst Corporation (NYSE: UNF) have announced a definitive agreement under which Cintas will acquire UniFirst for $5.5 billion, representing an enterprise value. The transaction, expected to deliver substantial benefits for customers, workers, and employees across North America, is estimated to generate approximately $375 million of operating cost synergies.
Cintas' revenue for the fiscal 2026 third quarter ended February 28, 2026, was $2.84 billion, an increase of 8.9% compared to the same period the previous year. The organic revenue growth rate for the third quarter of fiscal 2026, adjusting for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 8.2%.
Under the terms of the agreement, UniFirst shareholders will receive $155.00 in cash and 0.7720 shares of Cintas stock for each UniFirst share they own, representing a combined value of $310.00 per share based on Cintas’ closing share price of $200.77 on March 9, 2026.
The transaction is expected to close in the second half of calendar 2026, subject to customary closing conditions, approval by UniFirst shareholders, and the receipt of certain regulatory approvals.
UniFirst will report its financial results for the second quarter of fiscal 2026 on April 1, 2026, before the market opens. In light of the pending transaction with Cintas, UniFirst does not intend to hold quarterly conference calls or provide guidance updates going forward.
Cintas expects the transaction to be accretive to its earnings per share by the end of the second full year after closing, with a net leverage ratio at close expected to be 1.5x debt to EBITDA.
The transaction has been unanimously approved by the Cintas and UniFirst boards of directors, and entities affiliated with the Croatti family, which control approximately two thirds of the voting power of UniFirst’s common stock and class B common stock, have entered into a voting support agreement under which they have agreed to vote their shares in favor of the transaction.
Cintas has secured fully committed bridge financing from Morgan Stanley Senior Funding, Inc., KeyBank National Association, and Wells Fargo Bank N.A.
The combined company will deliver innovative products and outstanding services to approximately 1.5 million business customers across North America, aiming to create efficiencies and expand service capabilities by integrating complementary processing capacity, route networks, service infrastructure, supply chains, and technology investments.
The acquisition is expected to enhance capabilities in a large, growing, and competitive market, create a robust and efficient option for customers and workers, unlock additional resources and cost synergies, and optimize shared technological advancements.
The companies have emphasized that the transaction reflects a deep alignment in purpose and core priorities, including a steadfast commitment to investing in people and driving operational excellence. The combined company is expected to create meaningful benefits for employees and communities while advancing innovation for the benefit of customers and the broader industry. Following these announcements, the company's shares moved -0.08%, and are now trading at a price of $195.42. For more information, read the company's full 8-K submission here.
