M&A News: UniFirst Stock (UNF) Looks 9% Smarter after Cintas Buys it for $5.5B

Shares in uniform provider UniFirst UNF -1.80% ▼ were 9% smarter today after it was bought by peer Cintas Corporation CTAS -2.24% ▼ for $5.5 billion.

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The companies said they had entered into a definitive agreement under which Cintas will buy UniFirst for $310 per share in cash and stock. Cintas stock dropped over 2% in pre-market trading.

Workwear Market Growth

Cintas provides a range of services such as uniforms, facility services, training and fire protection across a whole host of sectors from education to manufacturing. UniFirst provides a similar range of services.

According to recent statistics, the global workwear market was worth $19.62 billion in 2025 and is set to rise to $30.4 billion by 2034.

Cintas said that the combined company would deliver “innovative products and outstanding services” to approximately 1.5 million business customers across North America. It added that it would also be able to deliver on the “strong buying motivations of image, safety, cleanliness and competence.”

It would also put the combined group in a better position to compete with larger companies focused on increasing their garment and facility offerings.

Multi-Million Dollar Savings

“This agreement marks a critical step in realizing substantial value for shareholders and customers,” said Todd Schneider, President and Chief Executive Officer of Cintas. “For decades, Cintas and UniFirst have built their reputations on a shared commitment to service excellence and putting customers first. By combining, we will be better positioned to drive growth and deliver on efficiencies that will benefit our collective customers and employee-partners.”

Cintas expects to realize approximately $375 million of operating cost synergies, including material cost, production expense, service expense and selling, general and administrative expense, within four years.

The deal is also expected to boost Cintas’ earnings per share by the end of the second full year after the deal closes in the second half of this year.

Cintas also revealed that its preliminary Q3 revenues had hit $2.84 billion compared to $2.61 billion last year, an increase of 8.9%.

Is CTAS a Good Stock to Buy Now?

On TipRanks, CTAS has a Moderate Buy consensus based on 6 Buy, 8 Hold and 1 Sell ratings. Its highest price target is $245. CTAS stock’s consensus price target is $217.64, implying a 10.88% upside.

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