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Uniform maker UniFirst-Corp. (NYSE:UNF) could also be a possible acquisition candidate for Cintas (NASDAQ:CTAS) primarily based on some feedback Cintas made on Thursday and a few current flight monitoring knowledge, in keeping with Gordon Haskett.
“We do not remark particularly on M&A, however what I can let you know is that this that we’re actively pursuing offers of all sizes and shapes,” Cintas (CTAS) CEO Todd Schneider mentioned in response to analyst’s query on the corporate’s M&A curiosity on its This fall earnings name on Thursday. “And positively, valuations matter definitely. Nevertheless it actually takes two to bounce. And for the best scenario to happen – an proprietor, a corporation, or shareholders of a corporation [have] to be keen sellers.”
UniFirst (UNF) can be a logical goal for Cintas (CTAS), particularly as Cintas is unlikely to pursue Aramark’s (ARMK) uniform enterprise, which the corporate is within the means of spinning out. A mix of Cintas and Aramark’s uniform division would doubtless have bother passing antitrust regulators, Gordon Haskett’s Don Bilson wrote in a notice on Friday.
Bilson additionally famous that Aramark (ARMK) is concentrated on spinning out its uniform enterprise, fairly than promoting it. Aramark confirmed in Might that its plans to separate its uniform enterprise. A mix of Cintas (CTAS) and UniFirst (UNF) may additionally draw U.S. regulatory scrutiny.
Any potential sale of UniFirst (UNF) is unlikely be achieved with out the approval of its founding household, the Croatti’s, in keeping with Bilson, who recommended that the “shareholders” remark from the Cintas CEO would possibly a attainable reference to getting approval from UniFirst holders.
UniFirst (UNF) has a market cap of $3.3 billion, whereas Cintas (CTAS) has a valuation of about $39 billion. UniFirst shares rose 1% in common buying and selling on Friday.
Whereas Cintas (CTAS) CEO Schneider’s feedback could also be telling, the largest clue on a possible UniFirst (UNF) deal could also be flight monitoring knowledge, in keeping with Bilson. UniFirst’s (UNF) company jet was noticed in Cintas’s headquarters of Cincinnati in late Might.
Additionally see SA contributor Alex Pitti’s piece from April entitled “UniFirst Investing To Compete With Cintas.”
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