Textile ServiceAcquisition

Rentokil Initial PLC 19 June 2000 RENTOKIL INITIAL MAKES £40M TEXTILE SERVICE ACQUISITION IN GERMANY Rentokil Initial, the global business services company, today announces that, subject to regulatory approval, it has agreed to purchase the share capital of Bilger Schwenk AG, a Germany textiles services business. This follows on from the company's successful entry into the Germany textiles services market in 1999 through the purchase of Adrett. Bilger Schwenk, a privately owned company based in Trossingen, near Stuttgart, has four laundries in the south of Germany and one in Switzerland. In 1999 it had turnover of DM81m (£26m). The purchase consideration is DM99m (£33m) payable in cash, and the assumption of debt of DM22m (£7m) to give a total cost of DM121m (£40m). Commenting upon this acquisition, Sir Clive Thompson, Rentokil Initial Chief Executive, said:- 'As well as providing excellent bolt-on opportunities, the purchase of Bilger Schwenk has the strategic advantages of improving the company's geographic coverage in Germany, and providing an entry into the Swiss textile services market. It further enhances Rentokil Initial's strong position in the European textile service market, now with major operations in the UK, France, Germany, Holland, Belgium and Spain.' The company also announces the acquisition of six, smaller, bolt-on acquisitions, within its tropical plants, pest control, manned guarding and hygiene activities in the USA, Belgium, Hong Kong and Australia. With aggregate consideration of £2m these acquisitions will add £3m to the company's turnover. Press enquiries: Sir Clive Thompson, Chief Executive C T Pearce, Finance Director 01342 833022
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