Business
Acquisition, CDC Contract Win and Trading Update
Acquisition, CDC Contract Win and Trading Update.
About this update from Rentokil Initial Plc
[{"type":"text","content":"\n \nRNS Number : 4823D Rentokil Initial PLC 07 July 2016 \n\n \n7 July 2016\nAcquisition, CDC Contract Win and Trading Update \nRentokil acquires Residex\nRentokil Initial plc (FTSE: RTO, \"the Company\") announces its continued expansion in North America with the acquisition of pest control and turf products distribution business Residex LLC (\"Residex\") for US$30m. \nResidex is the largest independent products distribution company in the US, with annualised revenues for the 12 months prior to acquisition of $113m. The acquisition increases the scale of the Company's existing pest and turf products business, which more than doubles in size. It creates the second largest business of this type in the US market, delivering national coverage and a greater density footprint. \nAndy Ransom, Chief Executive of Rentokil Initial plc, said: \"I'm delighted to welcome the Residex team to Rentokil Initial. North America is a strategic growth market for Rentokil with great potential for continued profitable growth and our acquisition pipeline remains strong. The addition of Residex means that our business in North America is set to deliver annualised revenues of around $1 billion by the end of the year - some two years ahead of our expectations.\"\nIn the first half of 2016 the Company completed a series of 20 highly-targeted city-based acquisitions, predominantly in Pest Control in North America, Asia, Pacific and Europe. Total annualised revenues in the year prior to acquisition for these businesses acquired, including Residex, were c. £100m. \nRentokil wins two-year contract with the US government to combat Zika virus\nRentokil North America has been awarded a contract by the U.S. Centers for Disease Control and Prevention (\"CDC\") to help control the species of mosquito that could potentially carry the Zika virus across the USA and its protectorates. The requirement of the programme is to provide pest control services until June 2018, subject to government review. As required, Rentokil will deploy its network of more than 4,000 pest control experts alongside its global technical resource to target affected or high-risk areas. Additionally, a key component of the contract includes support services that entail community outreach, surveillance and inspection, and support f...