Rentokil Initial PLC
30 July 2007
30 July 2007
Rentokil Initial to acquire major regional US pest control company
Rentokil Initial plc (LSE: RTO) announces that it has entered into an agreement
for the acquisition of the business and assets of Presto-X-Company from its
private owners for an initial cash consideration of US$38 million (£19 million)
plus further cash consideration of up to $7 million (£3.5 million) based on the
actual results for the year to 31 December 2007. Presto-X is a significant
regional pest control company based in Omaha, Nebraska, USA, focused
predominantly on commercial customers. Its turnover for the 12 months to 31
December 2006 was US$29 million.
Presto-X has 300 employees and operates from 21 branches within the central
states of the USA including Denver, Dallas, Memphis, St Louis, Kansas City,
Chicago and Oklahoma City. It is an excellent operational fit with Rentokil's
existing North American operations, which operate from 56 branches, primarily
across the eastern US states. Both organisations are shareholders in Copesan,
an alliance of companies created to provide pest management solutions to
customers with locations across North America.
Doug Flynn, Chief Executive of Rentokil Initial, said:
'Today's announcement is fully in line with our strategy in North America of
acquiring quality regional companies which expand our footprint, build density
in core regions and improve returns in this growing market. This follows the
successful acquisition and integration of JC Ehrlich, America's fourth largest
pest control company, in 2006. Our business in North America continues to
strengthen its position in the world's largest pest control market.'
Ends
Notes to Editors
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 wide 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, parcels delivery and
facilities services.
Rentokil operates pest control services in 38 countries, covering every major
economic centre around the world. In 2006, Rentokil Pest Control revenues were
£280 million, up 33.7%, of which the USA accounted for 28%.
Presto-X management has been at the forefront of the pest control industry in
the USA. Co-owner Ward Combs was previously President of the National Pest
Management Association, while Co-owner Jerry Keown was long-time Chairman of the
Government Affairs Committee of NPMA and was recently honoured for his service
in that capacity.
For further information, please contact
Rentokil Initial plc
Malcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199
Lisa Williams, Investor Relations - 020 7866 3028/07980 895 419
Brunswick Group
Kate Holgate - 020 7404 5959/07974 982402
Tom Williams - 020 7404 5959/07834 502 361
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.