Cintas Ends Acquisition Discussions with UniFirst

Cintas Corporation announced it has terminated discussions with UniFirst Corporation regarding its proposal to acquire all outstanding common and class B shares of UniFirst for $275.00 per share in cash. The offer represented a 46% premium over UniFirst’s ninety-day average closing price as of January 6, 2025, the last trading day before the proposal became public.

Todd Schneider, President and CEO of Cintas, stated that despite efforts to engage with UniFirst and its advisors over recent weeks, there was no substantive engagement regarding key transaction terms. As a result, Cintas has decided to end discussions.

Schneider reiterated the company’s confidence in its current growth strategy, emphasizing a continued focus on disciplined mergers and acquisitions and investments in technology initiatives. He expressed confidence in the company’s ability to create long-term value through its strong culture, team, and service offerings.

Cintas serves more than one million businesses across a range of industries by providing uniforms, facility services, safety products, and training. The company is headquartered in Cincinnati and is listed on the Nasdaq under the ticker symbol CTAS.

Cintas Posts Strong Q3 Results and Raises FY2025 Guidance Amid Organic Growth Momentum

Cintas Corporation delivered robust results for the fiscal third quarter ended February 28, 2025, with revenue rising 8.4% year-over-year to $2.61 billion. Organic revenue growth, which adjusts for acquisitions and currency effects, came in at a solid 7.9%. Net income grew 16.6% to $463.5 million, and diluted EPS rose 17.7% to $1.13, reflecting the September 2024 four-for-one stock split.

Gross margin improved to 50.6% from 49.4% last year, driven by better efficiency across business lines. Operating income jumped 17.1% to $609.9 million, aided by a $15 million gain from the sale of property and equipment. The company also generated $1.53 billion in operating cash flow over the nine-month period, translating into $1.24 billion in free cash flow.

Cintas raised its full-year guidance. Revenue is now projected to range between $10.28 billion and $10.305 billion, up from the previous $10.255–$10.320 billion range. EPS guidance increased from $4.28–$4.34 to $4.36–$4.40, representing 15–16.1% growth over FY2024.

CEO Todd Schneider attributed the strong performance to execution across the business and highlighted Cintas' differentiated value proposition in image, safety, cleanliness, and compliance. He reaffirmed confidence in continued value delivery through FY2025 despite fewer workdays and foreign exchange headwinds.