Unifirst (UNF) Surges 15.3% on $5.2B Cintas Takeover Bid: Is This the Catalyst for a New Bull Run?

Summary
• Cintas (CTAS) proposes $275/share cash offer for Unifirst (UNF), a 64% premium to 90-day average price
• UNF trades at $196.2 (+15.3%) with intraday range of $194.62–$218.52
• $5.2B deal includes $350M reverse termination fee, regulatory path deemed clear

Unifirst’s stock has erupted on news of Cintas’ fresh $275/share takeover bid, defying a bearish technical backdrop. The 15.3% intraday surge—despite a 34.7 RSI and short-term bearish K-line pattern—highlights the market’s fixation on the $5.2B acquisition proposal. With Cintas (CTAS) rising 0.54% as sector leader, the Business Services industry is now at a crossroads between strategic consolidation and shareholder skepticism.

Cintas’ $275/Share Bid Ignites Shareholder Optimism
The 15.3% intraday jump in UNF stems directly from Cintas’ renewed $275/share all-cash offer, which values Unifirst at $5.2B—a 64% premium to its 90-day average price. This proposal, submitted on December 12, 2025, includes a $350M reverse termination fee and no financing contingencies, signaling Cintas’ confidence in regulatory approval. The bid reiterates strategic synergies, including expanded route density and processing capacity for 1M+ North American business customers. Despite UniFirst’s board rejecting prior offers in 2022 and 2025, the current premium and Cintas’ $200.8M cash reserves have galvanized market sentiment, particularly as UniFirst’s stock languished 5% below S&P 500 performance since 2022.

Cintas (CTAS) Leads Business Services Sector Amid UNF Takeover Frenzy
Cintas (CTAS) rose 0.54% intraday, outperforming the flat Business Services sector. The $5.2B UNF acquisition, if approved, would create a $10B+ combined entity, reinforcing CTAS’ dominance in uniform and facility services. While UNF’s 15.3% surge dwarfs CTAS’ modest gain, the sector’s focus remains on consolidation. CTAS’ 92% outperformance against UNF’s 5% decline since 2022 underscores its strategic agility, though UNF’s 64% premium now challenges CTAS’ market leadership in the short term.

Options Playbook: Capitalizing on UNF’s Volatility and Sector Rotation
• 200-day MA: $175.45 (below current price) • RSI: 34.7 (oversold) • MACD: -1.16 (bearish divergence) • Bollinger Bands: $163.70–$186.35 (current price above upper band)

UNF’s technicals suggest a volatile short-term trajectory amid the takeover bid. Key support/resistance levels at $177.04 (30D) and $173.82 (200D) could dictate near-term direction. While the 34.7 RSI hints at oversold conditions, the bearish K-line pattern and -1.16 MACD signal caution. No leveraged ETF data is available, but sector rotation toward CTAS (up 0.54%) suggests capitalizing on UNF’s bid-driven volatility.

Top Option 1: UNF20260116P185 (Put)
• Code: UNF20260116P185 • Type: Put • Strike: $185 • Expiry: 2026-01-16 • IV: 48.22% • Leverage: 32.19% • Delta: -0.338 • Theta: -0.0818 • Gamma: 0.0147 • Turnover: 6,095
• IV (48.22%): High volatility expectation • Leverage (32.19%): Moderate gearing • Delta (-0.338): Mid-range sensitivity • Gamma (0.0147): Strong price responsiveness • Turnover (6,095): High liquidity
This put option offers a balanced risk-reward profile. With 48.22% implied volatility and 32.19% leverage, it benefits from UNF’s potential pullback toward $185. The -0.338 delta ensures meaningful payoff if the stock dips below $196.2, while high gamma (0.0147) amplifies gains on price swings. Projected 5% upside (to $206) yields a $11 payoff (max(0, 206-185)).

Top Option 2: UNF20260116C200 (Call)
• Code: UNF20260116C200 • Type: Call • Strike: $200 • Expiry: 2026-01-16 • IV: 57.16% • Leverage: 21.46% • Delta: 0.445 • Theta: -0.319 • Gamma: 0.0134 • Turnover: 53,400
• IV (57.16%): Elevated volatility • Leverage (21.46%): Conservative gearing • Delta (0.445): Mid-range sensitivity • Theta (-0.319): Aggressive time decay • Gamma (0.0134): Strong price responsiveness • Turnover (53,400): Exceptional liquidity
This call option is ideal for bullish traders. The 57.16% IV and 21.46% leverage align with UNF’s takeover-driven optimism. A 5% upside (to $206) generates a $6 payoff (max(0, 206-200)). The -0.319 theta ensures rapid time decay, rewarding quick execution, while high gamma (0.0134) amplifies gains on price acceleration. High turnover (53,400) ensures ease of entry/exit.

Hook: Aggressive bulls may consider UNF20260116C200 into a bounce above $195, while bears should monitor the $185 put for a potential short-term reversal.

Backtest Unifirst Stock Performance
The backtest of UNF's performance after a 15% intraday increase from 2022 to now shows mixed results. While the stock experienced a maximum return of 0.56% on day 45, the overall 3-day win rate is 47.68%, the 10-day win rate is 48.79%, and the 30-day win rate is 50.77%. This indicates that UNF tends to perform well in the short term, but the returns are generally modest, with a maximum return that is not significantly higher than the initial 15% surge.

UNF’s Takeover Drama Enters Critical Phase: Act Now or Miss the Window
The $5.2B Cintas bid has injected life into UNF’s stagnant stock, but technicals remain bearish in the long term. Key levels to watch: $195 (psychological support) and $185 (put strike). Cintas (CTAS)’s 0.54% rise as sector leader suggests continued consolidation momentum. Investors should prioritize the UNF20260116P185 put for downside protection and the UNF20260116C200 call for upside capture. If $195 breaks, the put offers a high-probability trade; above $195, the call aligns with takeover optimism. Act now—regulatory clarity or rejection by December 16 could trigger a sharp move.