Rentokil Initial PLC Rentokil Initial acquisitions (5757B)
08 January 2015 - 6:00PM
UK Regulatory
TIDMRTO
RNS Number : 5757B
Rentokil Initial PLC
08 January 2015
8 January 2015
Rentokil Initial acquisitions
Rentokil Initial plc (FTSE: RTO, "the Company") announces the
acquisition of Peter Cox Property Care, a leader in the provision
of remedial property care services (wood-boring insects and damp
proofing) to the domestic and commercial sectors. It joins the
Company's existing Rentokil Property Care business in the UK
securing nationwide coverage and adding regional density in this
growth market.
The Company has also acquired two pest control businesses:
EcoTime Pest Control in Italy and Tropical Pest Control in the
Bahamas. EcoTime, based in Milan, represents an important density
building opportunity in Northern Italy, whilst the acquisition of
Tropical, a leading player in the Bahamas, sees the Company enter
the Bahamian pest control market and will complement the Company's
existing hygiene operations in the country.
Combined annualised revenues for the last audited period of
Peter Cox, EcoTime and Tropical were approximately GBP24m. The
deals are in line with Rentokil Initial's strategy of accelerating
its M&A programme to pursue targets in higher growth markets
and in areas which add local density to existing operations.
Today's announcement brings the total number of acquisitions
made during 2014 to 30 (23 in pest control) with combined
annualised revenues in the 12 months prior to acquisition of GBP66m
and a total combined consideration, including deferred
consideration in line with normal contractual protections and the
achievement of certain operational targets, of GBP76m.
The Company also announces the disposal in December of its
Austrian hygiene products business to Hagleitner Technics GmbH. The
business was in the Company's Manage for Value quadrant and its
disposal continues our strategy of divesting non-core, lower margin
businesses and follows the disposal of the Spanish Medical and
Initial Facilities businesses earlier in 2014. The business
generated sales of GBP8m in the last financial year.
Rentokil Initial plc will announce its 2014 Preliminary results
on Friday 27 February 2015. Our expectations for the full year
ended 31 December 2014 remain unchanged.
Andy Ransom, Chief Executive of Rentokil Initial plc, said:
"2014 was a busy year on the M&A front for Rentokil Initial.
I am delighted with the businesses we have acquired and pleased
that the integrations are progressing well. It is particularly
pleasing to secure the Peter Cox acquisition which is an excellent
business in a growing market sector.
"In 2015 we will continue to pursue our differentiated strategy
to deliver profitable growth, organically and through targeted
acquisitions that meet our returns criteria and which build our
core businesses in Growth and Emerging markets."
--ENDS--
Notes to Editors
About Rentokil Initial plc
Rentokil Initial is one of the largest business services
companies in the world, operating in over 60 countries. The Company
offers route-based services including Pest Control, Hygiene and
Workwear through teams of local experts.
Rentokil Initial's differentiated strategy
On 28 February 2014, the Company announced its plan to deliver
sustainable revenue and profitable growth. The plan is based upon a
new, more focused model for the Company which included the
introduction of five geographic regions, a focus on three core
categories of pest control, hygiene and workwear, the sharing of
best practice within a lean operating model and delivering the
highest standards of customer service through colleagues who are
technical experts.
As part of this new model, the Company has also begun to manage
the business by grouping its country operations and categories into
a four-quadrant matrix (outlined below) - based upon their growth
potential and profit contribution. Each quadrant has a different
strategy, designed to maximise their performance.
EMERGING GROWTH
-------------------------------------- ----------------------------------------
Growth HIGH
Potential * Categories: * Categories:
* Pest * Pest
* Hygiene * Hygiene
* Cleanroom (Workwear)
* Geographies:
* Asia * Geographies:
* Mid East, N Africa, Turkey * North America
* Latin America * UK
* Africa * Germany, Austria Switzerland
* Mexico * Caribbean
-------------------------------------- ----------------------------------------
MED
* Categories: * Categories:
* Ambius (Plants) * Hygiene
* Workwear
LOW * Geographies:
* Ireland * Geographies:
* Spain * France, Benelux
* Portugal * Nordics
* Italy * Australia, New Zealand, Fiji
* Greece * South Africa
-------------------------------------- ----------------------------------------
MANAGE FOR VALUE PROTECT AND ENHANCE
-------------------------------------- ----------------------------------------
LOW MED HIGH
Profit Contribution
www.rentokil-initial.com
Investor / Analyst enquiries:
Katharine Rycroft, Investor Relations Rentokil Initial plc
07811 270 734
Media enquiries:
Malcolm Padley, Corporate Communications Rentokil Initial plc
07788 978 199
This information is provided by RNS
The company news service from the London Stock Exchange
END
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