New York–based hedge fund Engine Capital has begun a proxy contest at UniFirst, aiming to persuade the lead family trustees — who control the US uniform supplier through super-voting shares — to consider a sale of the business, potentially to rival Cintas, according to a report by The Boston Globe.
Engine, which has built a 3.2% stake in UniFirst over the past year, is seeking to place two nominees on the board at the company’s 15 December annual meeting: its managing member Arnaud Ajdler and Michael A Croatti, son of former CEO Ron Croatti.
The firm argues UniFirst has “lost its way” since Ron Croatti’s death in 2017 and that shareholders would realise more value through a sale to a strategic buyer.
Cintas offered $275 a share — roughly a $5bn valuation and a near-50% premium at the time — in January, but withdrew its bid in March after failing to win support from UniFirst’s controlling shareholders. UniFirst is currently valued at around $3bn.
