Last checked at 19 Mar 2015 07:00
19 March 2015
Rentokil Initial
Acquisitions in the USA, Guatemala and El Salvador
Completion of bond issue
Rentokil Initial plc (FTSE: RTO, "the Company") announces further expansion of its pest control category with the acquisitions of Eradico Services Inc in Michigan, USA, and Sagrip S.A. which gives Rentokil market entry into the main cities of Guatemala and El Salvador. The acquisitions are in line with the Company'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.
Combined annualised revenues for the 12 months prior to acquisition of Eradico and Sagrip were approximately £7.3m.
Andy Ransom, Chief Executive of Rentokil Initial plc, said:
"We are delighted with the acquisitions announced today. They are in line with our differentiated strategy for Growth and Emerging markets. Eradico is a high quality, well run business, adding to our national coverage in the USA. It also has expertise in mosquito control that will add value to our customer base.
"The acquisition of Sagrip provides us with our first steps into the main cities of Guatemala and El Salvador, and continues our expansion into new emerging economies following market entries into Brazil, Chile and Colombia. We also have opportunities to build on our existing customer relationships in Mexico where their operations extend further south."
Rentokil Initial plc today also announces that it has completed the issue of €50 million Floating Rate Notes due 13 March 2018. The Company has fixed these notes at an interest rate of 0.574%.
The proceeds will be used for general corporate purposes, including the repayment of existing debt. One of the Company's existing bonds, a £300m bond with a coupon of 5.75% matures early next year, so this new issue will help to refinance this at a significantly lower rate.
ENDS
Background on acquisitions
Eradico is a long established and well-respected pest control provider in Michigan (population of 9.9m people, 10th largest state in the USA). Its main city operations are in Detroit. Eradico's turnover is 60% commercial and 40% residential.
Sagrip is the leading independent pest control company across the growing markets of Guatemala and El Salvador. The majority of revenues are from commercial customers, such as leading international businesses in the food processing, hospitality and pharmaceutical industries. In Guatemala, Sagrip focuses on high-end commercial customers in Guatemala City. In El Salvador, it operates in the cities of San Salvador and San Miguel with a significant commercial (mostly hospitality) focus.
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.
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