Rentokil Initial PLC
12 June 2006
12 June 2006
COMPLETION OF MANNED GUARDING DISPOSAL PROCESS
Rentokil Initial plc ('Rentokil') today announces that it has signed an
agreement for the sale of its US manned guarding business, Initial Security LLC,
to Allied Security Holdings, LLC for a cash consideration of $73.6 million
(£40.0 million(1)), subject to certain completion adjustments. Completion,
which is subject to a number of regulatory conditions, is expected in August.
On 8 February Rentokil announced that it was exploring the possibility of
disposing of the group's manned guarding operations to other parties whose
strategic focus and/or investment priorities will mean they are more able to
realise the full potential of this business.
The sale of the US operations completes the strategic exercise to exit the
manned guarding market, having sold the UK, Canadian and Belgian operations
earlier this year.
The financial performance of the four combined businesses for the year to 31
December 2005 was as follows: revenue £365.2 million (2004: £331.6 million);
operating profit (before amortisation of customer lists and exceptional items)
£14.2 million (2004: £14.0 million).
Total consideration from the four disposals amounts to £150.9 million.
Doug Flynn, Chief Executive of Rentokil, commented:
'Completion of the manned guarding disposal process is a further important step
in the development of our company. We have achieved a good result for our
shareholders and will continue to focus our activities on enhancing shareholder
value.'
Enquiries
Rentokil Initial plc, Tel. +44 (0) 20 7866 3000
Mark Boyle, Group Strategy & Development Director
Lisa Williams, Investor Relations Manager
Brunswick Group LLP, Tel. +44 (0) 20 7404 5959
Kate Holgate
Jon Rhodes
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 has some 80,000 employees providing a range of support
services in over 40 countries where the 'Rentokil' and 'Initial' brands have
come to represent innovation, deep expertise and consistent quality of service.
Services include textiles and washroom services, pest control, tropical plants,
electronic security, parcels delivery and facilities services.
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(1) Based on a US$/GBP exchange rate of 1.83895.
This information is provided by RNS
The company news service from the London Stock Exchange
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