#WESTERN PEST CONTROL SERIES#
“We have taken our US Pest Control and Products business from revenue of less than $30million to $420million through a series of successful acquisitions, most notably JC Ehrlich, Presto-X and now Western over the last seven years. It is rightly proud of its 90-year tradition and reputation. “Western has service and quality levels that are among the best in the industry. “This acquisition significantly increases Rentokil’s footprint in the World’s largest pest control market and enables us to compete more effectively, particularly for customers looking for nationwide coverage in pest control or specialty chemical distribution capability. The profitability of Western will be improved significantly by leveraging Rentokil’s commercial and operational management capabilities to bring Western’s operating margins into line with Rentokil’s current North American Pest Control business.Īlan Brown, Chief Executive of Rentokil Initial plc, said: The transaction will be EPS accretive in year one. The acquisition is expected to complete later this year subject to receipt of the relevant regulatory clearances. The deferred consideration will be payable subject to certain working capital and other adjustments, including warranty and/or indemnity claims. In the year to 31 December 2011 the business acquired generated EBITA of $4.1m on revenues of approximately $149.0m (60% Pest Control: 40% Products). The total book value of the gross assets to be acquired is $36.7m.
The acquisition is consistent with Rentokil’s strategy, outlined in November 2011, of targeting pest control acquisitions in North America, Latin America and the Middle East. This division complements our existing specialty chemical products division which serves the East Coast of the US. – The Products division is a leading wholesale distributor of specialty chemicals serving the West Coast and central regions of the US, providing products and supplies to the pest control, landscape, golf course and nursery industries. It provides Rentokil with an entrance into these states with a population of 46m people. – The Pest Control division has 36 offices located primarily in California and the adjacent states of Arizona and Nevada. Rentokil will become the third largest pest control company in the North American market with pro-forma annualised revenues of $330m in pest control services (with coast to coast coverage) and $90m in speciality chemical products distribution. Rentokil Initial plc (”Rentokil”) has agreed to acquire the assets of Western Exterminator Company (”Western”), a leading pest control company on the US West Coast, for an initial cash consideration of $99.6m, with a deferred consideration of up to $15.0m payable within 18 months, from existing financial facilities. Western Pest Control (WPC), the specialist in pest control is today one of the fastest-growing players in the UAE market.
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