Saudi Arabian Maintenance & Environmental Services (SAMES), KSA

Sames

Who:

SAMES Co. Ltd. is the market leader in the commercial pest sector in the Kingdom of Saudi Arabia (KSA) headquartered in Riyadh with c. 1,900 customers and over 350 colleagues.

Why:

KSA is a key country in the Rentokil Initial Middle East growth strategy being the largest pest market in the region and experiencing strong growth. SAMES represented an opportunity i) to significantly increase our presence in the KSA market with a long standing company widely recognised as providing a reliable, high quality service; and ii) to bring market leading international pest control knowledge and ways of working to a country willing to embrace best practices.  We already operated in the region so were aware of some of the local working practices associated with the KSA market (e.g., visas/Saudisation/work permits) and the introduction of new legislation (e.g. VAT and foreign national levies) so weren’t deterred by the added complexity these can confer. 

What:

We developed a trusting relationship and held discussions with the owners over a number of years.  The deal required a thorough due diligence to understand fully how the business operated within the KSA regulatory framework, key controls and people as well as the future impact of new legislation.  As such, the deal took somewhat longer than is typical for Rentokil Initial. Sustaining a deal over a prolonged period in a confidential manner is testament to the intent and trust both parties had built.

Results:

This acquisition brought some very experienced managers into the Rentokil Initial business with valuable local operational, technical and financial knowledge.  The former owners still help support the business on a part time basis which is testament to the foundations on which the deal was based.  Our integration plan was simple – we wanted to preserve and improve – so we focused on ensuring employees transitioned easily into the Rentokil family, sought consent from key customers, trained employees to Rentokil Initial standards and introduced new initiatives to customers. SAMES has proudly retained the highest Saudization status and we have expanded the roles of many of the key staff who now contribute to the success of many of our other Middle Eastern businesses.  

Commenting on the acquisition, [Robert H. Gültling] the former Executive Manager of SAMES Co. Ltd. said “a solid relationship and trust amongst all the parties was a critical component of this transaction, as was Rentokil Initial’s flexibility and mind set of solving rather than creating problems. SAMES Co. Ltd., formerly Ciba-Geigy S.A., is an excellent business with solid track records reaching back to the 1970’s. The local expertise now paired with leading Rentokil techniques, standards and management systems will enable solid growth and expansion of operations and revenues”.