Rollins, Inc. has entered into a definitive purchase agreement with Northwest Exterminating Co., Inc. to acquire its pest control business. This will be a cash purchase, and the transaction is expected to close in early August, subject to the satisfaction of customary conditions and regulatory approval. This is Rollins’ largest acquisition since it acquired HomeTeam Pest Defense in 2008.
Based in Marietta, Ga., Northwest provides pest control, termite, and wildlife services for approximately 120,000 customers in Georgia, South Carolina, Tennessee, Alabama, and North Carolina. The company has developed relationships with premier home builders to provide pre-treatment services.
The family-owned and operated organization was established in 1951 by L.A. Phillips and his wife Emma Lene Phillips. From a family of two, the company has grown to a family of more than 500 team members and 23 service centers through the southeast. With reported 2016 revenue of just over $50 million, pest control industry trade publication PCT Magazine listed Northwest as the 17th largest pest control operator in the country in its most recent 2017 list.
Rollins has agreed to purchase the equity of the business for $120 million in cash plus and earnout estimated to be worth up to an additional $20 million.
Rollins will partner with the Phillips family, who will remain with the company, along with their entire management team. Northwest will continue to operate as a separate business, and one of Rollins’ Specialty Brands, along with: HomeTeam, Western Pest Services and Waltham.
“We are most pleased to have entered into this agreement with the Northwest organization.” said John Wilson, President and Chief Operating Officer of Rollins, Inc. “This acquisition provides significant opportunity for both Rollins and Northwest to grow and learn from each other. We see many benefits from this combination. Northwest has built a valuable business and a loyal team, as well as a reputation for excellent service. We look forward to working with Northwest’s president, Steve Phillips, and his great group of professionals.”
Steve Phillips, son of the company founder said, “We are excited to have found a partner in Rollins that will take excellent care of our team members and provide extraordinary service to our customers after the transition of ownership. Rollins shares the values that Northwest was founded on – namely: honesty, integrity and excellence.”
