The Federal Trade Commission is intensifying its antitrust investigation into Cintas Corp.’s proposed $5.5 billion acquisition of UniFirst. The agency issued a formal request for additional information in June. In September, the FTC expanded the probe by issuing civil investigative demands to other industry participants.
The combined company would control nearly 50% of the North American uniform and facility services market. Bernstein analysts noted on September 16 that the market-implied probability of deal approval dropped to 70%.
Cintas shares have risen approximately 18% since the start of July despite the regulatory hurdles.