Cintas Proposes $275 Per Share Acquisition of UniFirst
Cintas (CTAS) announced that it submitted a proposal to the board of directors of UniFirst (UNF) to acquire all outstanding common and class B shares of UniFirst for $275.00 per share in cash. The proposal, which was delivered to the UniFirst Board on December 12, implies a total value for UniFirst of approximately $5.2B and offers UniFirst shareholders a 64% premium to UniFirst's ninety-day average closing price as of December 11. Cintas has undertaken work on the regulatory front and remains confident that there is a clear path to obtaining the regulatory approvals necessary to consummate the proposed transaction. In the most recent proposal, Cintas has offered to extend a $350M reverse termination fee payable to UniFirst in the event the transaction is not approved. The proposed transaction would not be subject to any financing contingencies or approval by Cintas' shareholders. The cash consideration would be financed from Cintas cash on hand, committed lines of credit and/or other available sources of financing. Cintas expects to have limited and specific confirmatory due diligence requirements, customary for a public company transaction of this nature. Completion of the contemplated transaction is contingent upon reaching a definitive agreement and would be subject to the satisfaction of customary closing conditions, including receipt of UniFirst shareholder approval. On December 16, UniFirst acknowledged receipt of the Cintas Proposal; however, Cintas has had no substantive engagement since that date.
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Cintas (CTAS) Declares $0.45 Quarterly Dividend with 0.93% Yield
- Quarterly Dividend Declaration: Cintas has declared a quarterly dividend of $0.45 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Yield Analysis: The forward yield of 0.93% reflects the company's competitiveness in the current market environment, potentially attracting investors seeking stable income.
- Payment Schedule: The dividend is payable on March 13, with a record date of February 13 and an ex-dividend date also set for February 13, ensuring timely returns for shareholders.
- Acquisition Dynamics: Cintas continues to pursue its offer to acquire UniFirst for $275 per share in cash, despite analysts suggesting a low probability of acceptance, highlighting Cintas's ongoing efforts to expand its business.
Cintas Corporation (CTAS) Declares $0.45 Quarterly Cash Dividend, Continuing 42-Year Dividend Growth
- Dividend Announcement: Cintas Corporation's Board of Directors has approved a quarterly cash dividend of $0.45 per share, payable on March 13, 2026, reflecting the company's strong commitment to returning capital to shareholders.
- Historical Performance: Since its IPO in 1983, Cintas has consistently raised its dividend each year, demonstrating stable profitability and solid financial health, which enhances investor confidence.
- Shareholder Protection: Future dividend declarations will be at the discretion of the Board based on the company's operating results, financial condition, and other relevant factors, ensuring flexibility and sustainability in its dividend policy.
- Market Position: Cintas serves over one million businesses with products and services that ensure cleanliness, safety, and aesthetics, solidifying its position in the Fortune 500 and as a component of both the S&P 500 and Nasdaq-100 indices.
