PRESS RELEASE
BPCA member Rentokil will buy U.S.-based rival Terminix Global in a $6.7 billion deal, scaling up the company's pest control business in North America.
Rentokil shares hit a record high after the announcement, climbing as much as 6%.
The cash-and-stock deal involves about 643.29 million new Rentokil shares to be issued to Terminix shareholders and about $1.3 billion in cash.
The deal implies a value of $55 per Terminix share, representing a 47% premium to Monday's close. Terminix's shareholders will own about 26% of the enlarged group.
Rentokil's Chairman Richard Solomons and Chief Executive Andy Ransom will hold those same roles in the combined group.
Ransom commented on the deal, saying: “These are two highly complementary businesses with a similar operational playbook.
“We will open our first innovation centre in the US and provide our industry-leading innovations and digital technologies to a far larger customer base.”
The companies expect the transaction to close in the second half of 2022. In line with Rentokil’s undertakings to the Competition & Markets Authority, it has been reported that Terminix will dispose of its UK business prior to completion of the transaction.
Source: Online