Why Did UniFirst Stock Surge 37% Pre-Market Today?
Synopsis
The buyout offer, presented on December 12 to UniFirst’s board, values the company at roughly $5.2 billion.
UniFirst Corp (UNF) stock soared in Monday’s premarket, after Cintas Corp. (CTAS) officially submitted an acquisition proposal to buy all outstanding common and Class B shares for $275 per share in cash.
The offer, presented on December 12 to UniFirst’s board, values the company at roughly $5.2 billion and represents a 64% premium over UniFirst’s 90-day average closing price as of December 11.
Proposal Reason
Cintas highlighted its history of organic growth and noted that merging with UniFirst would increase processing capacity and route density, further improving customer service efficiency.
“Recent market commentary confirms that many UniFirst shareholders, including several of the Company’s largest institutional investors, recognize the value that a combination would deliver and share our belief that we are stronger together than we are apart.”
-Todd Schneider, President and CEO, Cintas
Following the proposal, UniFirst stock traded over 37% higher in Monday’s premarket.
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