Rentokil Initial PLC Acquisition (4055X)
28 August 2015 - 4:07PM
UK Regulatory
TIDMRTO
RNS Number : 4055X
Rentokil Initial PLC
28 August 2015
28 August 2015
Acquisition of Anderson Pest Solutions, USA
Rentokil Initial plc (FTSE: RTO, "the Company") announces the
continued expansion of its pest control business with the
acquisition of Chicago-based Anderson Pest Solutions ("Anderson").
Its annualised revenues for the 12 months prior to acquisition were
$21m.
The acquisition is in line with the Company's strategy of
continued acceleration of its pest control business and pursuing
acquisition targets in higher growth markets. It also builds
customer density, primarily in the Chicago metropolitan area.
Andy Ransom, Chief Executive of Rentokil Initial plc, said:
"We are delighted to join forces with Anderson Pest Solutions in
the Chicago area. It is a well-established and highly respected
business, and with long-term customer relationships.
"With an 80% commercial portfolio, areas of potential growth
include introducing additional services such as Rentokil's bird
control and bioremediation expertise to Anderson's customer base,
but also the benefits that Anderson's particular expertise in
eco-effective pest control will bring to us.
"North America is an important growth market for the Company and
our pipeline of acquisitions in pest control remains strong as we
expect to continue the acceleration in pest control and deliver the
next phase in our plan for profitable growth."
Rentokil North America Strategy and Performance
-- North America is a key strategic market in our Growth quadrant.
-- As set out in the recent Rentokil Pest Control seminar, North
America is the largest pest control market worldwide, with an
estimated growth rate of 3.5% in 2014.
-- The Company's strategy for strong growth and rising margins
in North America is to: increase scale in commercial pest control;
drive profitability through route density building by the in-fill
of areas with lower customer penetration; extend coverage and
capability for national accounts; accelerate growth through
M&A; and target local organic growth using the Rentokil model
of targeted sales activity, upselling additional services,
investment in brand building and high standards of customer
satisfaction leading to customer retention.
-- In the first six months of 2015, Rentokil Initial's North
America region revenue grew 8.3%, with strong profit growth of
19.5% driven by acquisitions and leverage impact from higher
revenues.
ENDS
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
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.
www.rentokil-initial.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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