Karishma Vanjani
UniFirst shares are surging in response to news that Cintas, a competitor in manufacturing work uniforms, has made an offer to acquire the company, valuing it at $5.3 billion.
Cintas, which offers first aid and safety and other uniforms, is proposing to pay $275 per share for all of UniFirst's outstanding common and Class B shares. The stock closed at $169.33 on Monday, implying a 62% gain in the price.
The stock rose in premarket trading after The Wall Street Journal reported that Cintas had made the offer. Cintas confirmed the news shortly before the market opened, saying that while the offer was delivered to UniFirst on Nov. 8, its board has refused to meet despite repeated attempts by Cintas to have a collaborative discussion.
UniFirst didn't respond to a request for comment.
In the past three years, UniFirst has rebuffed Cintas' offers twice. Investors now seem to believe the deal may go through: UniFirst's stock surged 44% to more than $243.7 after the market opened.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 07, 2025 10:28 ET (15:28 GMT)
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