Rentokil Initial Regulatory News (RTO)

30 Mar 2007 07:04

Rentokil Initial PLC30 March 2007 30 March 2007 INITIAL ELECTRONIC SECURITY GROUP: OFFER FROM UTC Rentokil Initial plc (LSE: RTO) announces an offer from United TechnologiesCorporation (NYSE: UTX) for its electronic security division. UTC's offervalues Initial Electronic Security Group ("IESG") at £595 million. The offerconsideration is payable in cash at closing. Closing of the transaction is conditional upon a limited number of itemsincluding regulatory approvals and consultations with employee works councils inFrance and the Netherlands. These will be sought and take place over the nextseveral weeks with a view to completing a transaction before the end of June.Proceeds will be used to reduce debt. Doug Flynn, Chief Executive of Rentokil Initial, said today: "This offer for our electronic security businesses represents good value forRentokil Initial shareholders. "Over the past 18 months we have been actively reshaping Rentokil Initial'sbusiness portfolio, investing particularly in businesses where we have or canachieve market leading positions. We have therefore made successfulacquisitions in pest control and parcel delivery and in our Asia Pacificbusinesses and sold businesses in conferences and manned guarding. Completingthis transaction will be a significant step towards focusing our resources onthose businesses where we are best positioned to create additional value forshareholders." Bill Brown, president of UTC Fire & Security, a unit of United TechnologiesCorp., said today: "IESG is an excellent strategic fit with our electronic security business. Theaddition of IESG will strengthen our presence in Europe, particularly in theU.K., Netherlands and France, while adding branch locations in the U.S. Thecombined businesses position us well for further growth and expansion, andbrings additional value to our customers, shareholders and employees. We arelooking forward to welcoming IESG employees to UTC Fire & Security." Rentokil Initial is being advised by Greenhill & Co. International LLP. Enquiries: Rentokil Initial plc +44 (0) 20 7866 3000 Malcolm Padley - Corporate CommunicationsLisa Williams - Investor Relations Further information: This announcement follows a previously announced strategic review of RentokilInitial's electronic security activities. It confirms that while InitialElectronic Security Group has performed well under Rentokil Initial ownership,it is of greater strategic value to other participants in the industry who maybe better positioned to support its long term growth. Initial Electronic Security Group The businesses within Initial Electronic Security Group (IESG) - principallycomprising Initial Fire & Security, Varel, Delta and Initial Electronics - areleading providers of electronic security services to commercial and publicsector customers in the UK, France, the Netherlands and the USA. The businessesmainly provide installation, maintenance and monitoring services for electronicsecurity systems including intruder alarms, fire alarms, CCTV and accesscontrol. IESG also provides integrated security system solutions on morecomplex security projects for corporate organisations, private individuals andgovernment facilities globally. In the year to 31 December 2006, IESG had £40.4million of adjusted operating profit (before amortisation of intangible assetsand one-off items) on £282.1 million of revenue, with gross assets at 31December of £185.1 million. IESG is headquartered in Blackburn, UK and managedby Clive Hayton. Rentokil Initial 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 range of support services in over 40 countrieswhere the 'Rentokil' and 'Initial' brands have come to represent innovation,deep expertise and consistent quality of service. Services include textiles andwashroom services, pest control, tropical plants, parcel delivery and facilitiesservices. UTC Fire & Security UTC Fire & Security, headquartered in Farmington, Conn., USA, provides firesafety and security solutions to more than one million customers worldwide. Itis a unit of United Technologies Corp., based in Hartford, Conn., a diversifiedcompany that provides high technology products and services to the aerospace andcommercial building industries worldwide. This information is provided by RNS The company news service from the London Stock Exchange