Key Highlights

  • UNF shares are trading down 11.56% to $247.30, against a prior close of $279.64.
  • A report says the FTC has told UniFirst and Cintas it intends to sue to block their $5.5 billion merger.
  • The deal spread widened to about $77 from $50, and Cintas also fell roughly 5% to 6%.
  • The FTC says it has not voted on a final decision, and the companies agreed not to close before December 11.
  • The drop adds to last week's EPS miss of $1.90 versus the $2.04 consensus.

Report of FTC Challenge Hits Deal Spread

UniFirst (NYSE:UNF) shares are trading down 11.56% to $247.30 after a media report said the FTC has told UniFirst and Cintas (NASDAQ:CTAS) it intends to sue to block their $5.5 billion merger. The stock fell as much as 17% intraday on volume far above average, and Cintas fell roughly 5% to 6%. The deal spread widened to about $77 from $50.

The FTC says it has not voted on a final decision. Deal terms are $155 in cash plus 0.7720 Cintas shares per UniFirst share, and the companies agreed not to close before December 11.

The move looks stock-specific, as broader markets and the industrials sector were little changed to higher. Shares opened at $278.83 and traded between $232.36 and $285.00 on volume of about 1.67 million shares.

Last Week's EPS Miss Adds Pressure

The reaction adds to last week's EPS miss of $1.90 versus the $2.04 consensus, which came with merger-related costs. UniFirst has a market cap of $4.47 billion, EPS of $7.68 and a dividend yield of 0.59%, and the 52-week range runs from $147.66 to $306.67.

UniFirst Runs a Recurring Route-Based Rental Model

UniFirst, founded in 1936 and headquartered in Wilmington, Massachusetts, is a North American provider of workwear and uniform programs, facility service products, and first aid and safety supplies. Its core business is a recurring, route-based rental model covering garment provision, laundering, repair and delivery, and it also runs cleanroom and nuclear decontamination garment programs. It manufactures a large share of its own garments, operates 270-plus service locations, serves more than 300,000 customer locations and outfits over 2 million workers.

Separately, UniFirst said its No. 9 Chevrolet, driven by Chase Elliott, will make the company's fifth and final primary sponsorship appearance of the 2026 NASCAR Cup Series season at Martinsville Speedway on November 1.

Merger Outcome Now Dominates the Outlook

The net takeaway is that the shares now trade on the odds of the merger closing. Investors will watch for a formal FTC decision and any response from the companies before the December 11 earliest closing date.