Rentokil Initial completes 50th acquisition in North America

Continuing its accelerated acquisition strategy Rentokil Initial has completed two purchases in the Americas to strengthen its pest control business

The FTSE 250 group made its 50th acquisition in North America with the addition of Eradico Services Inc in Michigan, together with Sagrip SA, which is focused on the main cities of Guatemala and El Salvador.

The two companies together made annualised revenues of roughly £7.3m in the 12 months prior to acquisition.

The company has completed a €50m floating rate bond issue at 0.574%, due 13 March 2018, for general corporate purposes, including the repayment of existing debt.

Chief executive Andy Ransom said the acquisitions were in line with the 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."