Value Investor Tweedy, Browne Bets on UniFirst Amid Acquisition Uncertainty

In a notable divergence from prevailing market caution, the prominent value investment firm Tweedy, Browne has established a significant stake in UniFirst Corporation. This move comes as the broader market continues to view Cintas Corporation's proposed acquisition of its rival with skepticism, reigniting debate over whether UniFirst shares present a buying opportunity despite looming regulatory challenges.

The company's most recent operational data, covering the first quarter of 2026, paints a nuanced picture. Revenue saw an increase of 2.7% year-over-year, reaching $621.3 million. However, profitability metrics faced headwinds. The operating margin contracted to 7.3%, down from 9.2% in the prior-year period.

This margin pressure flowed directly to the bottom line, with earnings per share declining to $1.89 from $2.31 a year earlier. This performance creates a dual narrative for shareholders: either a substantial premium is realized through the completion of the acquisition, or UniFirst must demonstrate its ability to independently reverse the profit squeeze.

A Contrarian Position from a Value Specialist

According to a recent SEC filing, Tweedy, Browne has reported a new position in UniFirst valued at approximately $19.69 million. This investment constitutes roughly 1.59% of the firm's U.S. equity portfolio. The entry of a well-known value-focused investor at this juncture suggests a belief in a fundamental undervaluation that extends beyond mere speculation on the takeover outcome.

Should investors sell immediately? Or is it worth buying UniFirst?

Market Skepticism Surrounds Takeover Bid

Tweedy, Browne's investment is positioned against a complex backdrop for the stock. Since December 2025, a cash offer from Cintas Corporation has been on the table, valuing UniFirst at $275.00 per share—a deal that implies an enterprise value of up to $5.3 billion. Despite this, the market has consistently traded the shares at a level significantly below the proposed offer price.

This discount reflects widespread investor concern that the transaction could fail to clear regulatory hurdles. Given that both companies are leading players in the uniform rental and workplace supplies sector, antitrust authorities are expected to scrutinize the merger closely. The key question is whether Tweedy, Browne perceives the current price gap as an attractive arbitrage opportunity or a longer-term value play.

Key Financial and Transaction Data:
* New Major Shareholder: Tweedy, Browne (position valued at $19.69 million)
* Acquisition Offer: $275.00 per share in cash from Cintas (December 2025)
* Quarterly Revenue: $621.3 million (a 2.7% year-over-year increase)
* Operating Margin: Declined to 7.3% from 9.2%
* Earnings Per Share: $1.89 (compared to $2.31 in the prior year)