FTC signals intent to block Cintas' $5 billion purchase of Unifirst
The Federal Trade Commission has warned Cintas that it may sue to stop its $5 billion acquisition of rival Unifirst.
According to insiders, the Federal Trade Commission plans to challenge Cintas’s proposed $5 billion takeover of Unifirst, citing worries over the firms’ joint market dominance. While the agency has not formally voted on the matter or convened a final-review session, staff members have expressed opposition. A spokesperson noted that any decision will not be announced through the press.
The news sent Unifirst shares down 12% and Cintas shares down 6%. Cintas, a massive $84 billion company offering uniforms, cleaning supplies, and office products, has long sought to acquire the smaller competitor. The potential lawsuit would contradict the view that antitrust regulators are taking a light-touch stance on mergers.
Why it matters
The FTC’s possible challenge could halt a major uniform-service merger, affecting competition and shareholder value.
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