UniFirst Corporation, a leading North American supplier of custom business uniforms, workwear, and facility service programs, announced that it has signed an agreement to purchase Clean Uniform for $300 million. The net purchase price is expected to be around $260 million after adjusting for anticipated incremental tax benefits.
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 annual revenue of approximately $90 million.
UniFirst CEO, Steven Sintros stated that, “Clean has built a highly respected business that provides quality service with a strong customer focus. 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.”
Transaction details
The acquisition is structured primarily as a stock purchase but will be treated as an asset purchase from a tax perspective, 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 plans to be strategic and patient in integrating the two businesses with a strong focus on customer and employee retention. The transaction is expected to close in the Company’s third fiscal quarter, subject to customary closing conditions and regulatory approvals, and UniFirst will finance the transaction through its cash reserves and availability under its existing line of credit.
The Board of Directors of UniFirst unanimously approved the transaction, and 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.
About UniFirst Corporation
UniFirst Corporation 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 it outfits nearly 2 million workers each business day. For more information, contact UniFirst at 800.455.7654 or visit UniFirst.com
Also read: ICO X RTUT: ICO Uniforms Acquires RTUT
