Rentokil Initial Regulatory News (RTO)

30 Jul 2007 07:01

Rentokil Initial PLC30 July 2007 30 July 2007 Rentokil Initial to acquire major regional US pest control company Rentokil Initial plc (LSE: RTO) announces that it has entered into an agreementfor the acquisition of the business and assets of Presto-X-Company from itsprivate 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 theactual results for the year to 31 December 2007. Presto-X is a significantregional pest control company based in Omaha, Nebraska, USA, focusedpredominantly on commercial customers. Its turnover for the 12 months to 31December 2006 was US$29 million. Presto-X has 300 employees and operates from 21 branches within the centralstates of the USA including Denver, Dallas, Memphis, St Louis, Kansas City,Chicago and Oklahoma City. It is an excellent operational fit with Rentokil'sexisting North American operations, which operate from 56 branches, primarilyacross the eastern US states. Both organisations are shareholders in Copesan,an alliance of companies created to provide pest management solutions tocustomers 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 ofacquiring quality regional companies which expand our footprint, build densityin core regions and improve returns in this growing market. This follows thesuccessful acquisition and integration of JC Ehrlich, America's fourth largestpest control company, in 2006. Our business in North America continues tostrengthen its position in the world's largest pest control market." Ends Notes to Editors Rentokil Initial is one of the largest business services companies in the world,operating in all the major economies of Europe, North America, Asia Pacific andAfrica. The company provides a wide range of support services in over 40countries where the 'Rentokil' and 'Initial' brands represent innovation, deepexpertise and consistent quality of service. Services include textiles andwashroom services, pest control, office plants and artwork, parcels delivery andfacilities services. Rentokil operates pest control services in 38 countries, covering every majoreconomic centre around the world. In 2006, Rentokil Pest Control revenues were£280 million, up 33.7%, of which the USA accounted for 28%. Presto-X management has been at the forefront of the pest control industry inthe USA. Co-owner Ward Combs was previously President of the National PestManagement Association, while Co-owner Jerry Keown was long-time Chairman of theGovernment Affairs Committee of NPMA and was recently honoured for his servicein that capacity. For further information, please contact Rentokil Initial plc Malcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199 Lisa Williams, Investor Relations - 020 7866 3028/07980 895 419 Brunswick Group Kate Holgate - 020 7404 5959/07974 982402 Tom Williams - 020 7404 5959/07834 502 361 This information is provided by RNS The company news service from the London Stock Exchange