Rentokil announced a $425m (1.5% debt backed) acquisition of Steritech which positions it at #3 in the pest control market in the US as well as Canada. The business has $97m pest control revenue (into National Accounts) along with a complimentary, $53m brand standards auditing business focused on the food industry and a pro-forma EBITA of $15m. Cost synergies are likely to ramp-up from $10m in FY 16 to $18m by FY 17 and a run-rate of $25m by FY 18 from back office/overhead savings, route dens
04 Sep 2015
Inorganic boost for North American pest control business
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Inorganic boost for North American pest control business
Rentokil Initial plc (RTO:LON) | 472 0 0.0% | Mkt Cap: 11,908m
- Published:
04 Sep 2015 -
Author:
Vibha Issar -
Pages:
2
Rentokil announced a $425m (1.5% debt backed) acquisition of Steritech which positions it at #3 in the pest control market in the US as well as Canada. The business has $97m pest control revenue (into National Accounts) along with a complimentary, $53m brand standards auditing business focused on the food industry and a pro-forma EBITA of $15m. Cost synergies are likely to ramp-up from $10m in FY 16 to $18m by FY 17 and a run-rate of $25m by FY 18 from back office/overhead savings, route dens