North American supplier of uniform and workwear programs, UniFirst Corporation said it has completed the acquisition of Arrow Uniform, also a uniform and FS service provider, in an all cash transaction for around $122 million. So, while UniFirst has acquired substantially all of Arrow's assets, it has received virtually none of Arrow's liabilities.
UniFirst expects the Arrow acquisition to add around $62 to $65 million to its fiscal 2017 revenues and also the deal to be dilutive to earnings in the same fiscal, partially the result of non-cash purchase accounting charges.North American supplier of uniform and workwear programs, UniFirst Corporation said it has completed the acquisition of Arrow Uniform, also a uniform and FS service provider, in an all cash transaction for around $122 million. So, while UniFirst has acquired substantially all of Arrow's assets, it has received virtually none of Arrow's liabilities.#
Arrow Uniform headquartered in Taylor, Michigan operates through 12 locations and nearly 700 employees in five mid-western US states.
UniFirst CEO Ronald Croatti said, “Business acquisitions have historically been an integral part of UniFirst's growth strategy, and we'll continue to seek out opportunities that make sense for us and meet our long-term business goals.”
“After the closing of the Arrow deal, we will still have around $240 million in cash on hand and significant borrowing capacity available under our line of credit for additional acquisitions or other capital allocation options,” he added. (AR)
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