FTC Moves to Block $5.5bn Cintas-UniFirst Merger

Overview

The Federal Trade Commission (FTC) has formally notified Cintas Corporation (NASDAQ: CTAS) and UniFirst Corporation (NYSE: UNF) of its intent to file a lawsuit to block their proposed merger valued at $5.5 billion.

Market Reaction

Cintas stock dropped as much as 7.5% during the session, closing 6% lower, marking its steepest decline since December 2024. UniFirst shares plunged 17% intraday before recovering slightly to end 9% down, representing the company’s worst intraday performance since March 2025.

Shareholder Approval

UniFirst shareholders voted overwhelmingly in favor of the transaction at a special meeting held on 11 June 2026, with more than 99% of votes cast—equating to roughly 95% of all outstanding UniFirst shares—supporting the acquisition.

Deal Terms

Under the agreed merger structure, each UniFirst share will be exchanged for $155 in cash plus 0.7720 shares of Cintas stock.

Regulatory Outlook

The FTC’s announced intent to block the deal introduces a significant antitrust hurdle that could halt the transaction in court, pending further review.