Rentokil completes Steritech Group deal

Pest control and hygiene services provider Rentokil Initial has completed the acquisition of The Steritech Group for $425m in cash.

The FTSE 250 group, which first announced the deal on 1 September, said the acquisition of the North American pest control business will provide a catalyst to further accelerate the growth of its pest control division, bringing the total value of its US portfolio in the sector to approximately $7.5bn.

By acquiring The Steritech Group, Rentokil has also become the third largest pest control company in Canada.

"For some time we have been pursuing a growth strategy in North America, the world's largest pest control market, with Steritech at the top of our target list,” said group chief executive Andy Ransom.

“It has an outstanding management team with a proven track record and a reputation founded on technical expertise and a premium service, similar to ours.”

Rentokil shares were up 0.49% to 148.83p at 0824 BST on Friday.