Rentokil Initial is set to become the third largest pest control firm in the US after it agreed a multi-million dollar deal to buy the Western Exterminator Company.
The British firm said Western's 36 offices, located primarily in California and the adjacent states of Arizona and Nevada, would give it exposure to 46m people living in these states.
Chief Executive Alan Brown said the deal enabled the company to compete more effectively in the US, particularly for customers looking for nationwide coverage in pest control or specialty chemical distribution capability.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Rentokil will initially pay $99.6m, with a deferred consideration of up to $15m payable within 18 months.
The tie-up will make the firm the third largest pest control company in the North American market with revenues of $330m in pest control services and $90m in speciality chemical products distribution.
Over the last seven years Rentokil has substantially increased its footprint in the US through acquisitions that have seen revenues there grow from less than $30m to $420m.
-
Annual UK rent jumps £3,240 since Covid, says ZooplaZoopla finds rental costs have risen 27% since 2021, with rental costs far outstripping wages over that period
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
