Breaking News: Rentokil Acquires Western Exterminator

Posted on September 25, 2012 with No Comments

Breaking News: Rentokil Acquires Western Exterminator

News Coverage

After months of speculation, Rentokil announced it has acquired the assets of Western Exterminator Company, for an initial cash consideration of $99.6 million.

READING Pa. and ANAHEIM, Calif. — After months of speculation, Rentokil Initial announced it has acquired the assets of Western Exterminator Company, for an initial cash consideration of $99.6 million, with a deferred consideration of up to $15 million payable within 18 months, from existing financial facilities.

The acquisition means that Rentokil will become the third largest pest control company in the North American market with annual revenues in excess of $330 million, according to a Rentokil news release. Western Exterminator reported 2011 revenues of $94.8 million, ranking it #11 on PCT’s 2012 Top 100 list, and services customers in California, Nevada and Arizona. The acquisition greatly expands the footprint of Rentokil North America, a $246-million operation (#4 on PCT’s 2012 Top 100 list). With brands J.C. Ehrlich, Presto-X and Watch All, Rentokil is a major player throughout the East Coast and Midwest; the addition of Western Exterminator gives Rentokil a much-needed West Coast presence and platform for expansion in this region.

The acquisition greatly expands the footprint of Rentokil North America, a $246-million operation (#4 on PCT’s 2012 Top 100 list). With brands J.C. Ehrlich, Presto-X and Watch All, Rentokil is a major player throughout the East Coast and Midwest; the addition of Western Exterminator gives Rentokil a much-needed West Coast presence and platform for expansion in this region (image: Rentokil Initial news release).

In the Rentokil release, Alan Brown, chief executive of Rentokil Initial, said, “This acquisition significantly increases Rentokil’s footprint in the world’s largest pest control market and enables us to compete more effectively, particularly for customers looking for nationwide coverage in pest control or specialty chemical distribution capability. Western has service and quality levels that are among the best in the industry. It is rightly proud of its 90-year tradition and reputation. We have taken our U.S Pest Control and Products business from revenue of less than $3 0million to $420 million through a series of successful acquisitions, most notably JC Ehrlich, Presto-X and now Western over the last seven years.”

As part of the deal, Rentokil also acquires Target Specialty Products, the Santa Fe Springs, Calif.-based distributor owned by Western. Target serves the western and central regions of the United States from 13 branch locations. According to the Rentokil press release, “this division complements our existing specialty chemical products division which serves the East Coast of the U.S.”

The acquisition is expected to complete later this year subject to regulatory approval.

PCT will be providing additional coverage of this developing story.