Rentokil announces five acquisitions

Business services group Rentokil Initial announced five acquisitions in the fourth quarter of 2015 and first week of 2016 in its growth and emerging quadrants.

The group acquired Oliver Entertaining in North America, which it said complements the company’s existing pest control activities in Arizona and Florida and provides market entry into Puerto Rico and the Dominican Republic.

It also bought Los Angeles-based Remus Pest Control to build density into its local pest control operations.

Combined annualised revenues for both companies were around £21m in the year prior to acquisition.

In addition, Rentokil bought Sydney-based independent commercial and pest control business, Knockout Pest Control, which generated annualised revenue of £1m in the year prior to acquisition.

It also bought New Zealand’s Fumacare Hygiene Services, which generated revenue of £5m in the year before the acquisition.

Finally, it purchased Malaysia-based Abadi Hygiene Services, which also delivers pest control services, and generated revenue of £3m.

Tuesday’s announcement brings the total number of acquisitions completed in 2015 to 23, with 21 in pest control, and combined annualised revenues in the 12 months prior to acquisition of £158m.

The company said a strong pipeline remains in place for 2016 and thereafter.

Chief executive Andy Ransom said: “2015 was a step change year for delivering on our strategy of expanding into higher growth markets through the acquisition of Steritech and other high-quality, sizeable US pest control businesses including Anderson Pest Solutions and Oliver Exterminating.

“Through these, and our bolt-on acquisition programme, we've created North America's third largest pest business offering truly national coverage in the world's biggest pest control market. We will continue to look for high quality pest businesses to build density, grow market share and enhance margins.”

At 0920 GMT, Rentokil shares were up 0.5% to 155.30p.