Rentokil Initial PLC
25 October 2006
25 October 2006
RENTOKIL INITIAL ACQUIRES 16 CITY LINK FRANCHISES
Buy back programme ahead of schedule
Rentokil Initial plc today announces that City Link has completed the
acquisition of a further 16 of its franchises for a total consideration of £25.5
million. The franchises were acquired through the purchase of Tiger Haulage,
Abbott Enterprises, Hallamgate Enterprises and Greenway Bird Express. The four
businesses had a combined turnover of £95 million for the year to completion.
Thirty three franchises have been acquired since the buy back programme was
announced a year ago.
The company announced in October 2005 its intention to buy back and integrate
the City Link franchises and, following the completion of the four transactions,
has spent £50 million on the initiative to date. City Link now owns 80% of the
network (57 franchises). There remain a further nine acquisitions (13
franchises) to complete the buy back programme.
Doug Flynn, Chief Executive of Rentokil Initial plc, commented:
'I am pleased with the progress we are making in transforming the City Link
business. These latest deals bring to 33 the number of franchises we have bought
in just 12 months and I look forward to completing the process ahead of schedule
in 2007. Directly managing the customer facing elements of our business allows
us both to improve efficiency and our responsiveness to customers.'
The franchise acquisition programme is part of a wider initiative to transform
City Link into a fully integrated premium parcels delivery service. In the past
six months, a new customer facing structure has been introduced with the
creation of regional customer centres and the launch of upgraded systems to
track parcels throughout the journey from consignor to consignee. The business
continues to win market share, with parcel volume up 10% in the first half of
2006 and continued high levels of customer satisfaction.
www.city-link.co.uk
www.rentokil-initial.com
- Ends -
For further information, please contact:
Rentokil Initial plc, Tel. +44 (0) 20 7866 3000
Malcolm Padley, Corporate Communications
Lisa Williams, Investor Relations
Brunswick Group LLP, Tel. +44 (0) 20 7404 5959
Kate Holgate and Jon Rhodes
This information is provided by RNS
The company news service from the London Stock Exchange
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