US Distribution Business Sold

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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