CINCINNATI — Cintas Corp., headquartered here, reports it has terminated discussions with Wilmington, Massachusetts-based. UniFirst Corp. regarding Cintas’ proposal to acquire all of the outstanding common and class B shares of UniFirst for $275 per share in cash.
The company says the offer is a premium of 46% over UniFirst’s 90-day average closing price as of Jan. 6, the last trading day before the proposal was made public.
“We have engaged with UniFirst and its advisors over the past several weeks in an effort to reach a mutual agreement regarding a transaction that we believe offers tremendous value for customers and shareholders,” says Todd Schneider, president and CEO of Cintas.
“While we continue to believe in the merits of a transaction, we were unable to have substantive engagement with UniFirst regarding key transaction terms. We do not believe further discussions are warranted at this time.”
In a statement released earlier this year, UniFirst said, “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.”
“Cintas will continue to execute our proven growth strategy through disciplined M&A and investment in ongoing technology initiatives to drive innovation and efficiency,” says Schneider. “With Cintas’ talented team, differentiated culture, and superior products and services, we remain well-positioned to create meaningful value for our shareholders and all stakeholders.”
In UniFirst’s statement, the company said its 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.”
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