12:37 PM EST, 01/07/2025 (MT Newswires) -- Cintas ( CTAS ) on Tuesday went public with its attempt to acquire smaller uniform rental company UniFirst ( UNF ) in a potential all-cash deal worth roughly $5.3 billion.

Cintas ( CTAS ) has proposed to purchase UniFirst ( UNF ) for $275 per share in cash. The offer reflects a 46% premium relative to the company's 90-day average price as of Monday, Cintas ( CTAS ) said.

UniFirst's ( UNF ) shares climbed 17% in midday trading while Cintas' ( CTAS ) stock gained 2.5%.

"We firmly believe in the compelling strategic fit between our two companies, and our offer would deliver immediate and compelling value to UniFirst ( UNF ) shareholders," Cintas ( CTAS ) Chief Executive Todd Schneider said in a statement. "The combination would also amplify the benefits of Cintas ( CTAS ) and UniFirst's ( UNF ) ongoing technology investments to drive growth."

Cintas ( CTAS ), which first expressed its interest in buying UniFirst ( UNF ) for $255 a share in February 2022, said it raised its offer to $275 in November 2024. UniFirst ( UNF ) rejected the offer toward the end of that month, according to Cintas ( CTAS ), which expressed willingness to improve the offer on two occasions in December. However, UniFirst ( UNF ) refused to engage.

"We call on the UniFirst Board, its controlling shareholders and management team to immediately engage with us to reach a mutually acceptable definitive agreement that delivers the full value of this combination for shareholders and other stakeholders," Schneider said.

Cintas ( CTAS ) said it expects a potential transaction to be accretive to its shareholders and generate "attractive" operating cost synergies for the combined company. The company expressed confidence that the deal will clear any regulatory hurdles.

In a separate statement, UniFirst ( UNF ) confirmed that it rejected Cintas' ( CTAS ) "highly conditional" offer in November and December, saying the move wasn't in the best interests of the company and its shareholders.

"The UniFirst ( UNF ) board and management team remain confident in the strategy the company is executing and the opportunities ahead to create significant shareholder value," UniFirst ( UNF ) said in its statement.

Price: 189.46, Change: +4.36, Percent Change: +2.36