Cintas, UniFirst fall after report that FTC to sue to block $5.5 billion deal

By Reuters News

** Shares of Cintas CTAS.O and UniFirst UNF.N down about 4% and 8%, respectively

** The Federal Trade Commission has indicated that it will sue to block Cintas' $5.5 billion acquisition of UniFirst, Semafor reports, citing people familiar with the matter

** FTC has not voted on the decision, but FTC staff have privately expressed concerns over the companies' combined market share, the report adds

** The deal aimed to combine two of North America's largest workwear and facility services providers, capping a multi-year pursuit in which Cintas made at least three formal approaches since 2022 and was expected to close by the end of the year

** Up to last close, CTAS and UNF had risen 20% and 45%, respectively, YTD

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