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.
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.
-
Yoshiaki Murakami: Japan’s original corporate raiderThe originator of Japanese activism, Yoshiaki Murakami, was disgraced by an insider-trading scandal in 2006. Now, he's back, shaking things up
-
Cash in on the growth potential of electrification companiesOpinion Martin Todd, portfolio manager, head of sustainable equities, Federated Hermes, highlights three electrification companies where he'd put his money
