UniFirst to acquire Clean Uniform for $300M

UniFirst announced that it has signed an agreement to purchase Clean Uniform for $300M, or a net purchase price of approximately $260M 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 $90M. 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 $40M. 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, 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.