Rentokil Initial PLC
6 January 2000
RENTOKIL INITIAL plc
SIR CLIVE THOMPSON
RENTOKIL INITIAL SELLS US DISTRIBUTION BUSINESS
Rentokil Initial plc, the world's largest business
services company, announces that it is selling DSI
Transports, its distribution business in the USA, to
Trimac Transportation of Canada (subject to anti-trust
clearance). The sale price is US Dollars 80m (£49.3m)
(including borrowings of US Dollars 12m).
The DSI distribution business had turnover in 1999 of US
Dollars 149m (£91.9m) and earnings of US Dollars 2.2m
(£1.4m). The sale price represents an exit price
earnings ratio of 36.3 times.
Sir Clive Thompson, Rentokil Initial's chief executive
commented on the disposal:-
'The sale of Initial DSI represents a good start to the
implementation of our plan to dispose of non-core
activities. The price of US Dollars 80m represents a
price earnings ratio of 36.3 times making this an
earnings enhancing deal.
We continue to work with our advisers on the divestment
of our other non-core activities through sale or
demerger. We will of course update shareholders as to
progress at the time of the announcement of our 1999
preliminary results on 1st March 2000. At that time, we
will also be despatching the circular to shareholders
seeking approval for the repurchase of shares.'
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