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.
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.
-
Could falling interest rates be the motivation savers need to invest?Chancellor Rachel Reeves wants to spark an investment revolution. Falling interest rates could help her in her mission.
-
8 of the best properties for sale with shooting estatesThe best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
