Rentokil buys Atlanta-based Allgood Services
Rentokil Initial has announced the acquisition of Atlanta-based pest control group Allgood Services of Georgia for an undisclosed sum.
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The company, which also operates in Tennessee, generated annualised revenues for the 12 months prior to acquisition of $26m.
Last year, Rentokil acquired 17 businesses in North America, in line with its strategy to accelerate growth in its pest control business and to pursue acquisitions in higher growth markets.
In the fourth quarter, it bought commercial pest control company Isotech Pest Management, which operates in Los Angeles and Orange Country, and is therefore “an excellent density fit” with Rentokil’s existing Western Exterminator business.
Rentokil pointed out that the pest control market in North America is estimated to be worth just over $8bn a year and accounts for around 50% of the market worldwide, making it a key strategic market for the company.
Chief executive Andy Ransom said: "Allgood is an outstanding business with an excellent reputation for customer service and high levels of customer retention. The acquisition is designed to build scale and customer density in the states of Georgia and Tennessee where the warmer climate means a higher pest intensity.
"In 2016 we acquired 41 businesses, primarily in our Growth and Emerging markets, and our pipeline of acquisitions remains particularly strong."