Key Takeaways
- UniFirst shares fell 10.5% on Tuesday, Oct. 27, after Semafor reported that the FTC had told Cintas it would sue to block its $5.5 billion takeover.
- The FTC hasn’t voted yet, so the deal is still alive. The payout UniFirst holders were counting on is now in doubt, though, and could slip past Cintas’s year-end target.
- On its own, UniFirst’s normalized EPS has been flat near $8 a share for three fiscal years, and analysts expect $9.33 in fiscal 2028.
- Before the selloff, UniFirst traded at 33x forward earnings, well above its five-year average of 25x. A $350 million breakup fee pays out only if the deal is terminated on antitrust grounds.
UniFirst (UNF) shares sank 10.5% on Tuesday, Oct. 27, after Semafor reported that the Federal Trade Commission has told Cintas (CTAS) it will sue to block the $5.5 billion takeover of its smaller rival. Cintas fell 5%.
That puts the payout UniFirst holders were counting on in doubt. Under the terms shareholders approved in June, each share gets $155 in cash plus 0.772 Cintas shares. At Cintas’s Tuesday price, that’s worth roughly $320, about 28% above UniFirst’s $250.40 close.
The deal isn’t dead yet
FTC staff have reportedly raised concerns about the two companies’ combined market share. But the agency hasn’t held its final “last-rites” meeting on the deal, and an FTC spokesperson told Semafor: “The FTC has not voted on a final decision in this transaction. Any decision will not be communicated through the press.”
On Oct. 2, both companies told the FTC they had substantially complied with its second request, and agreed not to close before Dec. 11. If it sues, Cintas could fight in court or offer to sell parts of the business to settle. A lawsuit would put Cintas’s year-end closing target at risk, while a settlement’s timing depends on how fast the two sides agree on remedies.
TIKR Tracks 4 Analysts on UniFirst. How Many Say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on UniFirst, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See UniFirst’s Analyst Ratings
On its own, UniFirst isn’t cheap
Without Cintas’s offer, UniFirst is worth what it earns, and its normalized EPS has been stuck near $8 a share for three fiscal years.
Analysts expect $8.39 in the fiscal year ending August 2027 and $9.33 the year after. That’s a 15% jump from fiscal 2026’s $8.10 (though only four analysts make that call).
Yet UniFirst traded at 33x forward earnings at Monday’s close, before the selloff, against a five-year average of 25x.
It bottomed at 18.5x in October 2025, five months before deal talk sent the stock up 13%. At Tuesday’s close it sits closer to 30x, and a return to its average would mean roughly another 15% drop.
UniFirst Is Now a Bet on the FTC
A 28% gap to the deal value says the market still gives Cintas decent odds, which makes UniFirst a bet on the FTC. Flat earnings and a 30x multiple won’t hold the price up on their own.
The closest thing to a cushion is a $350 million reverse termination fee Cintas would owe UniFirst if the deal is terminated on antitrust grounds. An FTC lawsuit alone doesn’t trigger it. Even if it pays out, it’s roughly $19 a share paid to the company, not to holders, and only about half of what a slide back to the average multiple would cost.
A settlement built on asset sales would revive the payout, at whatever Cintas shares are worth on closing day. A lawsuit would leave holders waiting on a judge, holding a fee that pays only if the deal formally dies.
So what is UniFirst stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
