UniFirst Corporation's Board Rejects Cintas Corporation's Acquisition Proposal

UniFirst's Board rejected Cintas' acquisition proposal, affirming confidence in its growth strategy and shareholder value creation.

Quiver AI Summary

UniFirst Corporation announced that its Board of Directors has unanimously rejected an unsolicited acquisition proposal from Cintas Corporation, which offered $275.00 per share for all outstanding shares of UniFirst. After careful evaluation and consultation with independent advisors, the Board determined that the proposal was not in the best interests of the company and its stakeholders, taking into account the offer price, associated risks, and potential growth opportunities. UniFirst's management remains confident in its current strategy and is committed to creating value for its shareholders. The company, based in Wilmington, Massachusetts, is a leader in uniform and workwear services, operating numerous facilities and serving over 300,000 customers.

Potential Positives

• The Board of Directors' unanimous rejection of the proposal from Cintas Corporation demonstrates strong governance and a commitment to shareholders' best interests.
• The careful review and consideration of large shareholders' feedback indicate a transparent decision-making process that prioritizes stakeholder engagement.
• The statement reflects confidence in UniFirst's growth strategy and future value creation opportunities, suggesting a positive outlook for the company's performance.
• The involvement of reputable financial and legal advisors indicates that UniFirst is taking prudent steps to navigate its strategic options effectively.

Potential Negatives

• The Board's rejection of the unsolicited acquisition proposal from Cintas indicates potential weaknesses in UniFirst's position or attractiveness as an acquisition target, which may concern shareholders about long-term growth prospects.
• The press release suggests that the Company is facing execution and business risks, which could undermine stakeholders' confidence in its current strategy.
• The statement about consulting with major shareholders underscores a potential divide or dissatisfaction among shareholders regarding the company's direction and value creation strategy.

FAQ

What proposal did Cintas Corporation make to UniFirst?

Cintas proposed to acquire all outstanding shares of UniFirst for $275.00 per share, which was rejected by UniFirst's Board.

Why did UniFirst reject Cintas' acquisition proposal?

UniFirst's Board deemed the proposal not in the best interests of the Company, its shareholders, and other stakeholders.

Who advised UniFirst during the proposal review?

UniFirst was advised by J.P. Morgan Securities LLC as the financial advisor and Paul Hastings LLP as the legal advisor.

What is UniFirst's business focus?

UniFirst specializes in supply and servicing of workwear, uniform programs, facility service products, and safety supplies.

What growth opportunities does UniFirst see?

UniFirst is confident in its strategies and future growth prospects aimed at creating significant shareholder value.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$UNF Insider Trading Activity

$UNF insiders have traded $UNF stock on the open market 25 times in the past 6 months. Of those trades, 0 have been purchases and 25 have been sales.

Here’s a breakdown of recent trading of $UNF stock by insiders over the last 6 months:

• RONALD D CROATTI TRUST - 1993 THE has traded it 13 times. They made 0 purchases and 13 sales, selling 31,860 shares.
• STEVEN S SINTROS (President and CEO) has traded it 3 times. They made 0 purchases and 3 sales, selling 3,207 shares.
• DAVID MARTIN KATZ (Executive VP, Sales/Marketing) has traded it 2 times. They made 0 purchases and 2 sales, selling 1,137 shares.
• SHANE O'CONNOR (Executive VP and CFO) sold 1,185 shares.
• MICHAEL IANDOLI has traded it 5 times. They made 0 purchases and 5 sales, selling 682 shares.
• WILLIAM MASTERS ROSS (Executive Vice President) sold 225 shares.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$UNF Hedge Fund Activity

We have seen 128 institutional investors add shares of $UNF stock to their portfolio, and 131 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• FULLER & THALER ASSET MANAGEMENT, INC. added 273,425 shares (+inf%) to their portfolio in Q3 2024
• CITADEL ADVISORS LLC removed 82,942 shares (-79.6%) from their portfolio in Q3 2024
• ASSENAGON ASSET MANAGEMENT S.A. removed 79,625 shares (-100.0%) from their portfolio in Q3 2024
• GOLDMAN SACHS GROUP INC removed 75,558 shares (-45.8%) from their portfolio in Q3 2024
• JPMORGAN CHASE & CO removed 64,759 shares (-15.0%) from their portfolio in Q3 2024
• T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 58,533 shares (-100.0%) from their portfolio in Q3 2024
• MORGAN STANLEY added 55,469 shares (+18.9%) to their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

WILMINGTON, Mass., Jan. 07, 2025 (GLOBE NEWSWIRE) -- UniFirst Corporation (NYSE: UNF) (“UniFirst” or the “Company”) today confirmed that in November and December 2024, its Board of Directors received and unanimously rejected an unsolicited, non-binding and highly conditional proposal from Cintas Corporation to acquire all outstanding common and Class B shares of UniFirst for $275.00 per share.

Consistent with its fiduciary duties and in consultation with its independent advisors, the Board conducted a careful review of the unsolicited proposal and determined that it is not in the best interests of UniFirst, its shareholders and other stakeholders. In making its determination, the Board considered the offer price, execution and business risks, feedback from some of the Company’s largest shareholders by voting power, and the Company’s future growth and value creation opportunities.

The UniFirst Board and management team remain confident in the strategy the Company is executing and the opportunities ahead to create significant shareholder value. The Board and management team are committed to creating value for all shareholders and will continue to take actions to achieve that objective.

J.P. Morgan Securities LLC is serving as UniFirst’s financial advisor and Paul Hastings LLP is serving as legal advisor.

About UniFirst Corporation

Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the Company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its five company-owned ISO-9001-certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For more information, contact UniFirst at 888.296.2740 or visit UniFirst.com.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements within the meaning of the federal securities laws that reflect the Company's current views with respect to future events. Such statements including, without limitation, statements regarding the Company’s strategies, opportunities, commitments and prospects. Forward-looking statements contained in this press release are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and may be identified by words such as “strategy,” “opportunities,” “create,” “continue,” “objective,” “achieve,” “future,” “growth,” “committed,” or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based on the Company’s current expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements. Such factors include, but are not limited to, the Company’s ability to execute on its strategies, and the other factors described under Part I, Item 1A. “Risk Factors” and elsewhere in the Company’s Annual Report on Form 10-K for the year ended August 30, 2024. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made.

Investor Relations Contact



Shane O’Connor, Executive Vice President & CFO


UniFirst Corporation


978-658-8888



shane_oconnor@UniFirst.com

Media Contact



Matthew Sherman / Aura Reinhard


Joele Frank, Wilkinson Brimmer Katcher


212-355-4449

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.