FTC Prepares to Sue to Block Cintas's $5.5B UniFirst Acquisition, Semafor Reports

The U.S. Federal Trade Commission has signaled its intent to sue to block uniform rental giant Cintas's proposed $5.5 billion acquisition of its smaller rival UniFirst, Semafor reported Tuesday, citing people familiar with the matter. The potential antitrust challenge casts significant doubt on a deal that would combine two of the largest players in the North American workwear and facility services market.

Regulatory Opposition

According to the report, FTC staff have privately communicated to Cintas their concerns about the combined company's potential market share and have indicated a lawsuit is forthcoming. However, the commission has not yet held a formal vote on whether to file the suit.

An official legal challenge from the FTC would represent a major regulatory hurdle for the merger. The agency has taken an increasingly aggressive stance on antitrust enforcement, scrutinizing deals it believes could lead to higher prices or reduced choice for consumers and businesses. Neither Cintas, UniFirst, nor the FTC immediately responded to requests for comment, as reported by Reuters.

Ad

Market Impact and Deal Background

The news triggered a sell-off in both companies' shares on Tuesday. UniFirst's stock fell approximately 8%, while Cintas saw its shares decline by about 5%.

The cash-and-stock deal was first announced in March, capping a multi-year pursuit by Cintas, which has a market capitalization of $89.71 billion. Cintas had made at least three formal approaches to acquire the $5.06 billion-valued UniFirst since 2022. The strategic rationale for the acquisition centered on expanding Cintas's reach and realizing cost synergies by consolidating delivery routes, plants, and supply chains.