Rentokil North America has acquired substantially all of the assets of Eradico Services, a Michigan-based residential (40%) and commercial (60%) pest control firm generating a little more than $10 million in revenue at the time of the acquisition.
Eradico Pest Control was founded in 1931 by entrepreneur Myron Sempliner. In 1980, Bill Russell joined the firm, bringing a wealth of industry experience. Not long after, highlighting the 50-year milestone of Eradico, Russell and three long-term employees purchased the company.
The acquisition was in line with Rentokil’s strategy of accelerating its M&A program to pursue targets in higher growth markets and in areas which add local density to existing operations.
Although Rentokil has paid some premiums on recent pest control acquisitions, in certain respects they continue to be one of the most disciplined acquirers in the market. After years of struggling under the weight of Rentokil’s less-than-stellar City Link acquisition in the UK, relatively new CEO Andy Ransom has sharply focused the business’s strategy around growth in both emerging markets as well as more promising advanced economies.
Andy Ransom, Chief Executive of Rentokil Initial plc, said:
“We are delighted with the acquisitions announced today. They are in line with our differentiated strategy for Growth and Emerging markets. Eradico is a high quality, well run business, adding to our national coverage in the USA. It also has expertise in mosquito control that will add value to our customer base.
