Cintas, UniFirst Shares Fall on Report FTC Will Sue to Block US$5.5 Billion Uniform Merger

Shares of US uniform rental companies Cintas and UniFirst dropped sharply on Tuesday after news outlet Semafor reported that the Federal Trade Commission (FTC) intends to go to court to stop Cintas’ proposed US$5.5 billion takeover of UniFirst, Investing.com reported.

According to Reuters, which cited the Semafor report, the antitrust regulator has indicated to Cintas that it will sue to block the acquisition. Semafor based its report on people familiar with the matter. Investing.com said the report described the FTC as having formally notified both companies of its intention to halt the deal in court.

How shares reacted

UniFirst, the target, took the bigger hit. Investing.com said its shares plunged as much as 17% early in the session, the stock’s worst intraday performance since March 2025, before paring losses to trade about 9% lower. Reuters later put UniFirst’s decline at 8%.

Cintas fell as much as 7.5% during the day, its steepest drop since December 2024, and was later trading around 6% lower, according to Investing.com. Reuters reported Cintas was down about 5%. Reuters said Cintas is valued at US$89.71 billion, while UniFirst has a market capitalisation of US$5.06 billion.

The deal

Cintas agreed in March to buy UniFirst in a cash-and-stock transaction that would combine two of North America’s largest workwear and facility services providers, Reuters reported. The agreement followed a multi-year pursuit in which Cintas made at least three formal approaches to its rival since 2022.

Under the terms reported by Investing.com, UniFirst shareholders are to receive US$155.00 in cash plus 0.7720 Cintas shares for each UniFirst share they own. UniFirst investors approved the transaction at a special meeting on June 11, 2026, with more than 99% of votes cast in favour, representing roughly 95% of the company’s outstanding shares.

Reuters said Cintas had been counting on the merger to widen its reach and lower costs by combining delivery routes, plants and supply chains, as it sought to compete more effectively with rivals.

What’s next

The FTC has not yet voted on whether to bring a lawsuit, Reuters reported, citing Semafor. Agency staff have privately raised concerns about the two companies’ combined market share, according to the report.

Cintas, UniFirst and the FTC did not immediately respond to Reuters’ requests for comment. Investing.com’s report carried no statement from either company.

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