UNF/CTAS: UniFirst completes FTC information requests, parties weigh remedies
UniFirst has completed the data compilation required by the US Federal Trade Commission as the agency reviews the company’s proposed acquisition by Cintas, CTFN understands from an unidentified source.
On September 29, CTFN reported that UniFirst was in its final week of providing the FTC with all discovery requirements.
The source echoed this, saying Cintas is still working to complete its portion of the investigation, remains committed to the public timeline and is targeting full submission no later than November in order to stay on track to an end-of-year close.
The parties are aiming to complete their portion of the submission sooner, in anticipation of remedy negotiations, according to the source.
Both UniFirst and Cintas expect the FTC will ask for some type of remedy, with the parties potentially offering an upfront proposal with the goal of avoiding any disruption to the timeline or a costly and prolonged legal battle, the source added.
No details were provided on what potential remedies or divestitures may be offered, if at all.
Legal teams at both companies believe, given the breadth of the civil investigative demands (CIDs) issued, that they need to be proactive and assume clearance will require extensive negotiations, the source said.
Cintas is going to be financially disciplined if the value of the deal deteriorates due to possible remedies, the source concluded.