Cintas to Acquire UniFirst for $5.5B, Boosting Laundry Facilities 50%
UniFirst will be acquired by Cintas for $310 per share in a $5.5 billion cash-and-stock transaction valuing UniFirst at 16.6× last-12-month EBITDA. Cintas forecasts $375 million in cost synergies over four years, potential revenue lift of ~20% and 50% more laundry facilities, with ~10% EPS accretion by year four.
1. Deal Structure
Cintas will acquire UniFirst for $310 per share in a transaction valued at approximately $5.5 billion, split evenly between cash and stock.
2. Valuation and Synergies
The purchase price reflects a 16.6× multiple of UniFirst’s trailing 12-month EBITDA, with Cintas projecting $375 million in cost and operational synergies over four years, translating to an expected synergized multiple of about 8×.
3. Operational Impact
The acquisition will expand Cintas’ laundry facility network by roughly 50% and lift combined revenues by an estimated 20%, with anticipated earnings per share accretion of around 10% by the fourth year.
4. Regulatory and Execution Outlook
The deal may face Federal Trade Commission review given market share concentration, while Cintas emphasizes its prior successful integrations and aims to shift the narrative toward execution capabilities.