- UniFirst is buying Clear Uniform for $300 million. These are the details.
UniFirst Corporation (NYSE: UNF) announced it is buying Clean Uniform 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.
Launched 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.
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. 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.
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. And UniFirst will finance the transaction through the use of its cash reserves and availability under its existing line of credit.
KEY QUOTES:
“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.”
“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.”
— UniFirst CEO, Steven Sintros
