I initiated a 300 share Cintas (CTAS) position in a ‘Side’ account within the FFJ Portfolio in December 2024. I disclose this purchase in this December 19, 2024 post.
On January 7, 2025, CTAS announced that it submitted a proposal to UniFirst Corporation’s (UNF) Board to acquire all outstanding common and class B shares shares for $275.00/share in cash. This proposal implied a total value for UNF of ~$5.3B. Interestingly, UNF’s current market cap is ~$3.3B.
UNF rebuffed CTAS’s offer and on March 24, CTAS announced that it terminated discussions with UNF.
In early December 2025:
Engine Capital put together a presentation on the need for UNF to improve governance and initiate a review of strategic alternatives which is accessible here. It also announced that Institutional Shareholder Services Inc. (ISS), a leading independent proxy advisory firm, recommended that UNF shareholders send a clear message to the UNF’s Board that the status quo is untenable. Engine Capital owns ~3.2% of UNF’s outstanding shares of common stock.
River Road Asset Management addressed UNF’s Board regarding shareholder concerns. River Road Asset Management, on behalf of its clients, owns ~881,000 Class A common shares of UNF, which represents ~6.0% of the Class A shares and ~4.9% total ownership interest in the company.
Boyar Value Group sent an open letter to UNF’s Board to initiate a strategic review following the rejection of multiple credible acquisition offers.
UNF’s 2026 Annual Meeting of Shareholders is scheduled for December 15, 2025. The pressure in on UNF’s Board to consider a major change to reverse the company’s poor performance. UNF, however, has a dual class structure in which the Class A shares hold 1 vote/share and the Class B shareholders hold 10 votes/share. As of October 22, 2025, the number of outstanding shares of the Registrant’s Common Stock and Class B Common Stock were 14,565,659 and 3,551,265, respectively.
NOTE: Aldo Croatti founded UNF in 1936. He became President and gained control of the majority of the company in the early 1940s. He remained the Chairman of the Board until his death on October 4, 2001.
His son, Ronald D. Croatti, became the company’s Chief Executive Officer (CEO) in 1991 and Chairman of the Board in 2002, after the passing of his father. On May 23, 2017, at the age of 74, he passed away due to complications associated with pneumonia.
The Croatti family controls over 70% of the vote with only an economic interest of ~19.6%.
Whether:
- CTAS makes another acquisition offer for UNF;
- UNF is receptive to an offer from CTAS;
- CTAS succeeds in acquiring UNF
is unknown. Even if nothing materializes, I still like CTAS’s long term outlook. This is why my CTAS exposure is currently 700 shares. CTAS posts in which I disclose my purchases are accessible through the Archives section.
Final Thoughts
I last reviewed CTAS in this November 3, 2025 post at which time I disclosed the purchase of 100 shares @ $181.455 in a ‘Side’ account in the FFJ Portfolio.
On December 18, 2025, CTAS will release Q2 and YTD2026 results. I will, however, be unable to review these results until early January. If CTAS interests you, it would be worthwhile to closely monitor both CTAS and UNF.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to finfreejourney@gmail.com.
Disclosure: I am long CTAS.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
