Rentokil Initial to acquire major regional US Pest Control company

30 Jul 2007

Rentokil Initial plc (LSE: RTO) announces that it has entered into an agreement for the acquisition of the business and assets of Presto-X-Company from its private owners for an initial cash consideration of US$38 million (£19 million) plus further cash consideration of up to $7 million (£3.5 million) based on the actual results for the year to 31 December 2007. Presto-X is a significant regional pest control company based in Omaha, Nebraska, USA, focused predominantly on commercial customers. Its turnover for the 12 months to 31 December 2006 was US$29 million.

Presto-X has 240 technicians and operates from 21 branches within the central states of the USA including Denver, Dallas, Memphis, St Louis, Kansas City, Chicago and Oklahoma City. It is an excellent operational fit with Rentokil’s existing North American operations, which operate from 56 branches, primarily across the eastern US states. Both organisations are shareholders in Copesan, an alliance of companies created to provide pest management solutions to customers with locations across North America.

Doug Flynn, Chief Executive of Rentokil Initial, said:

“Today’s announcement is fully in line with our strategy in North America of acquiring quality regional companies which expand our footprint, build density in core regions and improve returns in this growing market. This follows the successful acquisition and integration of JC Ehrlich, America’s fourth largest pest control company, in 2006. Our business in North America continues to strengthen its position in the world’s largest pest control market.”