Business
Disposal of Style Conferences
Disposal of Style Conferences.
About this update from Rentokil Initial Plc
[{"type":"text","content":"\n Rentokil Initial PLC\n29 November 2005\n\n\nFor immediate release\n\nRentokil Initial PLC\n29 November 2005\n\n\n\n Rentokil Initial - Disposal of Style Conferences\n\nRentokil Initial plc ('Rentokil' or the 'Company') announces that it has entered\ninto arrangements with Alternative Hotel Group, a group of investors led by\nRichard Balfour-Lynn and other MWB directors acting in their private capacity\npartnering with Bank of Scotland, pursuant to which it expects to sell the\nInitial Style Conferences business ('Style Conferences' or the 'Business') for a\ntotal consideration of £325 million on a debt free cash free basis, to be paid\nin cash at completion. It is Rentokil's intention to apply the proceeds against\ncurrent indebtedness and the transaction is expected to close within two weeks.\n\nStyle Conferences is the market leader in the provision of training and\nconferencing venues in the UK and owns the freehold of 21 of the 29 centres that\nit operates. It was acquired as part of the BET group of businesses in 1996 and\nhas always been operated on a standalone basis. For the twelve months ended 31\nDecember 2004, the Business generated operating profit of £25.3 million and\nprofit before tax of £19.7million on turnover of £91.1 million. As at 31\nDecember 2004 Style Conferences had net assets of £128.9 million and gross\nassets of £165.0 million.\n\nDoug Flynn, Chief Executive of Rentokil Initial, said today:\n\n'We decided to sell Style Conferences because its operating characteristics are\nsubstantially different from other businesses in the Company, and because we\nbelieve that there are other owners for whom the business would be a better fit.\n\nThis transaction is a good outcome for our shareholders and has been achieved in\nline with the timetable we set earlier in the year. It is another step forward\ntowards our aim of creating a clearer strategic focus by concentrating upon the\ndevelopment of those businesses which can add most value for our shareholders.'\n\nEnquiries:\n\nRentokil Initial plc +44 (0) 1342 833022\n\nMark Boyle, Group Strategy & Development Director\nCharles Grimaldi, Corporate Affairs Director\n\nGreenhill & Co. International LLP +44 (0) 20 7440 0400\n\nSimon Borrows\nEdward Wakefield\n\nBrunswick Group LLP +44 (0) 20 7404 5959\n\nJohn Sunnucks\nGill Ackers\n\n\nNOTES FOR EDIT...