WILMINGTON, Mass., Dec. 15, 2025 (GLOBE NEWSWIRE) -- UniFirst Corporation (the “Company” or “UniFirst”) (NYSE: UNF), a North American leader in providing customized business uniform programs, facility service products and first aid and safety services, today announced that the preliminary vote count from the Company’s proxy solicitor indicates that the Company’s nominees, Steven S. Sintros and Joseph M. Nowicki, were re-elected to the UniFirst Board of Directors (the “Board”) at the Company’s Annual Meeting ...

Core Viewpoint - Third Avenue Management LLC is a long-term owner of Class A common shares of UniFirst Corp and plans to support Engine Capital's proposed directors at the upcoming shareholder meeting on December 15th [1] Group 1: Company Ownership - Third Avenue Management has held shares of UniFirst since 2010, indicating a long-term investment strategy [1] Group 2: Voting Intentions - Third Avenue intends to exercise its voting authority in favor of Engine Capital's proposed directors for UniFirst at the upcoming meeting [1]

Core Viewpoint - River Road Asset Management expresses significant disappointment with UniFirst's Board and management for rejecting a proposed acquisition by Cintas, which was seen as a breach of fiduciary duty and detrimental to shareholder interests [2][6]. Company Performance - UniFirst's financial performance peaked in FY19, but the company has since struggled with labor and benefits inflation, merchandise cost pressure, and limited pricing power to offset these challenges [3][6]. - Under CEO Steve Sintros, UniFirst has lagged behind Cintas in key operational metrics, leading to a widening valuation gap between the two companies [4][6]. Strategic Alternatives - River Road advocates for the exploration of strategic alternatives, including a potential sale of UniFirst, to maximize shareholder value and mitigate execution risks associated with the current operational strategy [7]. Market Context - The competitive landscape in the laundry industry emphasizes the importance of scale, with route density providing advantages in margins and service levels [3]. - The rejection of the Cintas offer has led to a decline in UniFirst's stock price, which has fallen below pre-offer levels, reflecting ongoing operational challenges and a lack of confidence in future growth [6].

Core Viewpoint - The Boyar Value Group has called for an immediate strategic review of UniFirst Corporation due to years of underperformance and the Board's refusal to engage with credible potential buyers [1][2]. Company Performance - UniFirst has faced years of underperformance, which has eroded shareholder confidence and destroyed value [3]. - The company has dismissed multiple acquisition approaches, including a recent proposal from Cintas Corporation that offered a more than 45% premium to UniFirst's unaffected price, which was $275 per share [2][3]. Governance Concerns - The refusal of UniFirst's Board to engage with credible buyers raises serious fiduciary concerns, as highlighted by the Boyar Value Group [2][4]. - There are concerns that the Board's decisions may be influenced by the substantial annual compensation of over $300,000 earned by many non-employee directors, rather than focusing solely on maximizing long-term shareholder value [5]. Strategic Recommendations - Boyar Value Group urges the UniFirst Board to take specific actions, including forming an independent special committee, reengaging with Cintas and other credible buyers, conducting a robust sale process, and providing transparency to shareholders regarding strategic alternatives [7].

Core Viewpoint - Engine Capital LP, a significant independent shareholder of UniFirst Corporation, is urging the company's trustees to engage in discussions regarding the potential sale of the company to enhance its future for employees, customers, and shareholders [1][2]. Shareholder Engagement - Engine Capital has made multiple attempts to privately communicate with the trustees about strengthening the Board and the need for a sale, but these attempts have been ignored, prompting the public letter [2][3]. - The letter emphasizes the trustees' disregard for shareholders and calls for a meeting to discuss the future of UniFirst [2][14]. Board Composition and Governance - Engine Capital has proposed the nomination of a third qualified director to the Board, alongside Michael Croatti, to enhance governance and value creation [3]. - The company has suggested expanding the Board to eight directors as a compromise to accommodate the new candidate [3]. Financial Performance and Legacy Concerns - Under the current trustees, UniFirst has reportedly lost competitive ground, which is detrimental to employees and customers, and has resulted in significant financial losses for the Croatti family [4][5]. - Since the passing of former CEO Ron Croatti over eight years ago, UniFirst's stock price has remained flat, while competitor Cintas' shares have increased nearly five-fold, indicating a substantial loss of value [6]. Call for Sale and Strategic Direction - Engine Capital argues that a sale of UniFirst is the optimal path forward, as the current management's strategic initiatives are unlikely to yield the necessary improvements [7][8]. - The letter suggests that pursuing a sale would not only benefit stakeholders but also restore the legacy of the Croatti family [8]. Annual Meeting Concerns - The company has scheduled a virtual-only annual meeting for December 15, 2025, which is seen as a deviation from standard practices and a tactic to limit shareholder participation [9][10]. - The timing of the meeting is criticized as an attempt to manipulate the election process, raising concerns about the Board's commitment to shareholder rights [10][12]. Governance and Transparency Issues - The actions taken by the Board, including the accelerated meeting date and virtual format, are viewed as contrary to good governance principles and shareholder democracy [13]. - Engine Capital calls for accountability among directors who endorse such tactics, suggesting they should be barred from serving on public company boards [13].

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Core Points - UniFirst Corporation filed its preliminary proxy statement for the 2026 Annual Meeting of Shareholders, recommending shareholders vote for its director nominees and expressing confidence in its long-term growth strategy [1][3][4] Group 1: Board of Directors - The Board nominated CEO Steven S. Sintros and Audit Committee Chairman Joseph M. Nowicki for election, while Raymond C. Zemlin will retire after his term [2] - The Board recommends shareholders vote against the nominees proposed by Engine Capital Management, LP, advocating for its own candidates instead [3] - The current Board consists of seven directors, five of whom are independent, with expertise in finance, operations, technology, and other relevant areas [5] Group 2: Strategic Focus - The Company emphasizes a clear strategy focused on investing in people, technology, and infrastructure to drive growth and profitability [4] - The Board is committed to refreshing its composition, having appointed three new independent directors in the past three years [5] Group 3: Proxy Materials - UniFirst's preliminary proxy materials are available on the SEC's website, and definitive materials will be mailed to eligible shareholders [6] - Shareholders are advised to disregard any proxy materials from Engine Capital and to use the WHITE proxy card provided by UniFirst [6] Group 4: Company Overview - UniFirst is a North American leader in providing customized business uniform programs, facility service products, and first aid and safety services, with over 270 service locations and more than 2 million workers outfitted daily [8]

Core Insights - Third Avenue Management's "Third Avenue Small-Cap Value Fund" reported a return of 7.18% in Q3 2025, underperforming the MSCI USA Small-Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [1] - The fund's performance was positively influenced by contributions from a diverse range of businesses [1] Company Analysis: UniFirst Corporation (NYSE:UNF) - UniFirst Corporation's stock experienced a one-month return of -2.75% and a 52-week decline of 22.44%, closing at $151.81 per share with a market capitalization of $2.75 billion on November 5, 2025 [2] - The fund noted that UniFirst is under pressure to demonstrate its value proposition as a standalone business after rejecting an acquisition offer from Cintas Corporation earlier in the year [3] - Despite acknowledging UniFirst's potential, the fund believes that certain AI stocks present greater upside potential and lower downside risk [3]

Customer Base and Revenue - The company serves over 300,000 customer locations across the U.S., Canada, and Europe, with no individual customer accounting for more than 10% of total revenue in the last three years [24]. - The company has experienced fluctuations in revenues and operating results due to various factors, including economic conditions and seasonal patterns [22]. Manufacturing and Sourcing - Approximately 62% of garments placed in service during fiscal 2025 were manufactured in-house, primarily work pants and shirts, with the remainder sourced from various suppliers [29]. - The company manufactured approximately 99% of the mats placed in service at its plant in Cave City, Arkansas [29]. Employment and Talent Management - As of August 30, 2025, the company employed approximately 16,000 team partners, emphasizing recruitment, development, and retention of talent [30]. Financial Obligations and Borrowing Capacity - The company has total contractual cash obligations of $259.8 million as of August 30, 2025, with significant commitments in operating leases and purchase commitments [185]. - The company had total borrowing capacity of $300 million under its Credit Agreement, with no outstanding borrowings as of August 30, 2025, and $193.3 million available for borrowing [187]. Acquisitions - The company regularly evaluates acquisition opportunities and typically pays for acquisitions with cash, cash generated from operations, or borrowings [184]. Customer Service Commitment - The company maintains a commitment to service excellence, with a system in place to respond to customer inquiries within 24 hours [27]. Environmental Regulations - The company is subject to various environmental regulations and has taken measures to address environmental concerns related to its operations [32]. Financial Instruments and Energy Costs - As of August 30, 2025, the company had forward contracts with a notional value of approximately 1.8 million CAD, with a fair value recorded at $0.1 million in prepaid expenses and other current assets [188]. - During fiscal 2025, energy costs, including fuel, natural gas, and electricity, represented approximately 3.9% of total revenue [189]. - The company reclassified $0.1 million from accumulated other comprehensive loss to revenue related to derivative financial instruments during fiscal 2025 [188].

Core Points - UniFirst Corporation has declared increased quarterly cash dividends of $0.365 per share for Common Stock and $0.292 per share for Class B Common Stock, payable on January 2, 2026 [1] Company Overview - UniFirst Corporation is a North American leader in supplying and servicing uniform and workwear programs, facility service products, and first aid and safety supplies [2] - The company operates five ISO-9001-certified manufacturing facilities and manages specialized garment programs for the cleanroom and nuclear industries [2] - With over 270 service locations and more than 300,000 customer locations, UniFirst outfits over 2 million workers daily [2]