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FTC Raises Antitrust Concerns Over Cintas’ $5.5 Billion Deal

By  |  October 27, 2026
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The Federal Trade Commission has privately indicated that it intends to challenge Cintas Corp.’s proposed acquisition of rival UniFirst Corp., raising uncertainty over a roughly $5.5 billion transaction that would combine two major suppliers of workplace uniforms and business services, according to a report by Semafor.

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    FTC officials have communicated concerns about the companies’ combined share of the market, potentially setting the stage for a legal confrontation, Semafor reported Tuesday, citing people familiar with the discussions. However, the commission has not formally voted to oppose the acquisition, and a final meeting with the companies before a potential lawsuit has yet to take place.

    The report triggered a sharp selloff in both companies’ shares. UniFirst declined 12%, while Cintas fell 6%, according to Semafor, reflecting investor concerns that regulatory intervention could derail the transaction.

    An FTC spokesperson emphasized that no final determination had been made.

    “The FTC has not voted on a final decision in this transaction. Any decision will not be communicated through the press,” the spokesperson told Semafor.

    Cintas did not respond to the publication’s requests for comment.

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    The proposed acquisition, announced in March, would expand Cintas’ position in the North American market for uniform rental, workplace cleaning products and related business services. Cintas, which Semafor valued at approximately $84 billion, has pursued UniFirst for several years.

    Under the agreement, Cintas would acquire UniFirst for $310 per share in a combination of cash and stock, representing an enterprise value of approximately $5.5 billion.

    The companies had previously disclosed that they substantially complied with the FTC’s requests for additional information. They also agreed not to complete the transaction before Dec. 11 unless the agency concludes its investigation earlier. Cintas has maintained that it expects the acquisition to close by the end of 2026.

    The FTC’s reported position could represent a significant test of merger enforcement under President Donald Trump’s administration. Some corporate executives and deal advisers have anticipated a more accommodating regulatory environment, particularly for large transactions.

    However, the potential challenge to Cintas suggests that federal regulators may continue to pursue aggressive antitrust enforcement when proposed combinations raise concerns about reduced competition.

    Semafor contrasted the scrutiny facing Cintas with the administration’s approval of Paramount’s $110 billion acquisition of Warner Bros. Discovery, which received regulatory clearance despite extensive examination by antitrust officials.

    For Cintas and UniFirst, the central issue is whether their combination would leave business customers with fewer competitive options in the uniform and workplace services market. A legal challenge could delay the acquisition, force the companies to negotiate concessions or threaten the agreement altogether.

    Source: Semafor