The Real Estate and M&A teams advised longtime client UniFirst Corporation (NYSE: UNF) in its agreement to purchase Clean Uniform for $300 million.
The acquisition is structured primarily as a stock purchase but from a tax perspective will be treated as an asset purchase, which will allow for a step-up in the tax basis of the assets and provide incremental tax benefits valued at approximately $40 million over time. The Board of Directors of UniFirst unanimously approved the transaction. The acquisition is expected to close in the company’s third fiscal quarter ended May 27, 2023, subject to customary closing conditions and regulatory approvals. UniFirst will finance the transaction through the use of its cash reserves and availability under its existing line of credit.
Headquartered in Wilmington, Mass., UniFirst is a North American leader in the supply and servicing of uniform and workwear programs, as well as the delivery of facility service programs. Together with its subsidiaries, the company also provides first aid and safety products, and manages specialized garment programs for the cleanroom and nuclear industries. UniFirst manufactures its own branded workwear, protective clothing, and floorcare products; and with 260 service locations, over 300,000 customer locations, and 14,000-plus employee Team Partners, the Company outfits nearly 2 million workers each business day.
The Goodwin team was led by Scott Chase and Blake Liggio.
For additional details on the transaction, please read the press release.