Cintas Corp CTAS

Cintas' Acquisition of Unifirst Strengthens its Unmatched Route Density

Cintas is by far the largest provider of outsourced uniform rentals and facility services in North America. The business has successfully fended off competition and side-stepped obsolescence for almost a century. Employee and facility appearance and cleanliness are extremely important for Cintas’ target businesses such as hotels, restaurants, and hospitals. Moreover, the manufacturing of supplies, the maintenance of building safety systems, and the performance of specialized workwear have to follow increasingly strict global regulations, which we think pushes more and more businesses to outsource noncore services to a professional like Cintas. The firm offers its services cheaper than the customer can achieve through economies of scale derived from its national footprint and gargantuan quantity of sourced supplies.