Rentokil Initial PLC
17 July 2007
17 July, 2007
Rentokil Initial acquires Lancaster Office Cleaning Company
Rentokil Initial plc (LSE: RTO) today announces that it has completed the
acquisition of the entire issued share capital of Lancaster Office Cleaning
Company Ltd ('Lancaster') for a total consideration of £19.0m.
Lancaster is a leading provider of high quality cleaning and support services to
the Greater London area, with a particular focus on the City, where it counts
numerous blue chip companies among its client base. The company has an
experienced management team and has grown revenue strongly. Turnover for the
year ended 31 July 2006 was £45 million, up 14.5% year on year.
Lancaster, which employed an average of 3,600 people during 2006, is an
excellent operational fit with the existing cleaning services provided by
Initial Facilities Services. The acquisition strengthens Initial's position in
the City, while providing opportunities for cross selling of other services such
as washrooms, pest control and office plants, particularly into clients within
the financial services sector.
In 2006, Initial Facilities Services saw revenues increase by 10.6% to £519
million, of which 63% was related to cleaning services.
Peter Lloyd, Divisional Managing Director of Initial Facilities Services said:
'The strength of the Lancaster brand, its strong presence in the London
metropolitan area, its blue chip customer base and the company's proven and
experienced management team all combine to make this an excellent acquisition.
Lancaster is an ideal fit with our existing business.'
Ends
Lancaster Office Cleaning Company Ltd
The company was established in 1976 by the Lancaster brothers. It is the most
prominent provider of cleaning and support services to blue chip clients within
the City and Canary Wharf. Post acquisition, Lancaster will continue to operate
under its own brand name and under the direction of Ray Lancaster and the
current senior management team.
Rentokil Initial
Rentokil Initial is one of the largest business services companies in the world,
operating in all the major economies of Europe, North America, Asia Pacific and
Africa. The company provides a range of support services in over 40 countries
where the 'Rentokil' and 'Initial' brands represent innovation, deep expertise
and consistent quality of service. Services include textiles and washroom
services, pest control, office plants and artwork, express parcel delivery, IT
hygiene and facilities services.
For further information, please contact
Rentokil Initial plc
Malcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199
Brunswick Group
Teresa Bianchi - 020 7404 5959 / 07834502477
This information is provided by RNS
The company news service from the London Stock Exchange
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