Rentokil Initial Regulatory News (RTO)

29 Nov 2005 07:03

Rentokil Initial PLC29 November 2005 For immediate release Rentokil Initial PLC29 November 2005 Rentokil Initial - Disposal of Style Conferences Rentokil Initial plc ("Rentokil" or the "Company") announces that it has enteredinto arrangements with Alternative Hotel Group, a group of investors led byRichard Balfour-Lynn and other MWB directors acting in their private capacitypartnering with Bank of Scotland, pursuant to which it expects to sell theInitial Style Conferences business ("Style Conferences" or the "Business") for atotal consideration of £325 million on a debt free cash free basis, to be paidin cash at completion. It is Rentokil's intention to apply the proceeds againstcurrent indebtedness and the transaction is expected to close within two weeks. Style Conferences is the market leader in the provision of training andconferencing venues in the UK and owns the freehold of 21 of the 29 centres thatit operates. It was acquired as part of the BET group of businesses in 1996 andhas always been operated on a standalone basis. For the twelve months ended 31December 2004, the Business generated operating profit of £25.3 million andprofit before tax of £19.7million on turnover of £91.1 million. As at 31December 2004 Style Conferences had net assets of £128.9 million and grossassets of £165.0 million. Doug Flynn, Chief Executive of Rentokil Initial, said today: "We decided to sell Style Conferences because its operating characteristics aresubstantially different from other businesses in the Company, and because webelieve that there are other owners for whom the business would be a better fit. This transaction is a good outcome for our shareholders and has been achieved inline with the timetable we set earlier in the year. It is another step forwardtowards our aim of creating a clearer strategic focus by concentrating upon thedevelopment of those businesses which can add most value for our shareholders." Enquiries: Rentokil Initial plc +44 (0) 1342 833022 Mark Boyle, Group Strategy & Development DirectorCharles Grimaldi, Corporate Affairs Director Greenhill & Co. International LLP +44 (0) 20 7440 0400 Simon BorrowsEdward Wakefield Brunswick Group LLP +44 (0) 20 7404 5959 John SunnucksGill Ackers NOTES FOR EDITORS: Style Conferences' turnover, operating profit and net assets are derived fromthe segmental analysis in Rentokil's annual accounts as at 31 December 2004.Style Conferences' profit before tax and gross assets are derived from InitialStyle Conferences Limited statutory accounts as at 31 December 2004. Greenhill & Co. International LLP ("Greenhill & Co."), which is regulated by theFinancial Services Authority, is acting for Rentokil Initial plc in connectionwith the disposal of Style Conferences and for no one else and will not beresponsible to anyone other than Rentokil for providing the protections affordedto customers of Greenhill & Co. nor for providing advice in relation to thispotential transaction. This information is provided by RNS The company news service from the London Stock Exchange