Below is a press release from Wilmington-based UniFirst:
WILMINGTON, MA — UniFirst Corporation, a North American leader in the supply and servicing of custom business uniform and workwear, facility service programs, and first aid and safety products, announced this week that it has signed an agreement to purchase Clean Uniform (“Clean”) for $300 million, or a net purchase price of approximately $260 million after adjusting for the estimated value of anticipated incremental tax benefits that it expects to realize over time.
Founded in 1938 and headquartered in St. Louis, MO, Clean Uniform is one of the largest independent uniform, workwear and facility service program providers in the United States with (11) locations covering Missouri, Illinois, Arkansas, Kansas and Oklahoma and annual revenue of approximately $90 million.
“Clean has built a highly respected business that provides quality service with a strong customer focus,” stated UniFirst CEO, Steven Sintros. “The addition of Clean into the UniFirst family will provide a foundation for us to deliver an enhanced service experience for our customers in the markets that they serve.”
Mr. Sintros continued, “UniFirst recognizes Clean’s strong service reputation in this market and is committed to retaining its employees, including its management, service and operations teams, as well as operating its facilities. We will be strategic and patient in the integration of the two businesses with a strong focus on customer and employee retention.”
The acquisition is structured primarily as a stock purchase but from a tax perspective will be treated as an asset purchase, which will allow for a step-up in the tax basis of the assets and provide incremental tax benefits valued at approximately $40 million. UniFirst Management will provide additional details on the estimated impact of the acquisition on its fiscal 2023 financial results during its quarterly earnings call scheduled at the end of March 2023.
The Board of Directors of UniFirst unanimously approved the transaction. The acquisition is expected to close in the Company’s third fiscal quarter ended May 27, 2023, subject to customary closing conditions and regulatory approvals. UniFirst will finance the transaction through the use of its cash reserves and availability under its existing line of credit.
About UniFirst Corporation
Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, as well as the delivery of facility service programs. Together with its subsidiaries, the Company also provides first aid and safety products, and manages specialized garment programs for the cleanroom and nuclear industries. UniFirst manufactures its own branded workwear, protective clothing, and floorcare products; and with 260 service locations, over 300,000 customer locations, and 14,000-plus employee Team Partners, the Company outfits nearly 2 million workers each business day. For more information, contact UniFirst at 800.455.7654 or visit UniFirst.com.
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