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Uniform maker UniFirst-Corp. (NYSE:UNF) could also be a possible acquisition candidate for Cintas (NASDAQ:CTAS) based mostly 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 inform you is that this that we’re actively pursuing offers of all sizes and styles,” 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. But it surely actually takes two to bop. And for the correct scenario to happen – an proprietor, a company, or shareholders of a company [have] to be prepared sellers.”
UniFirst (UNF) could 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 seemingly have hassle passing antitrust regulators, Gordon Haskett’s Don Bilson wrote in a observe on Friday.
Bilson additionally famous that Aramark (ARMK) is targeted on spinning out its uniform enterprise, somewhat than promoting it. Aramark confirmed in Might that its plans to separate its uniform enterprise. A mix of Cintas (CTAS) and UniFirst (UNF) might additionally draw U.S. regulatory scrutiny.
Any potential sale of UniFirst (UNF) is unlikely be carried out with out the approval of its founding household, the Croatti’s, in keeping with Bilson, who instructed 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 most important 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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