It was beginning to look a lot like Christmas for Tim, at least until the news broke of Rentokil making a move to acquire Terminix. Join in as William Blair’s Group Head of Global Services Equity Research Analyst Tim Mulrooney returns to The Boardroom. Speculation abounds in this $7.5 billion deal.
In this deal that stretches Across the Pond, what needs to get carved-out and why? There is value to unlock in this deal, and it sounds like the accretion estimates are conservative. There are hidden synergies, including the Terminix turnaround surrounding termite claims and employee retention. Rentokil can knock out one of their competitors at the M&A table while picking up a network of 360 branches.
While over in Memphis, it’s hard to turn down a 50% upside. With the recent antitrust precedence, it sounds like Terminix has their work cut out for them to get to their grand finale at the closing table. Terminix has to look at how they’re going to carve out their national account business to pass muster with the DOJ and the SEC. There is a $245 million threshold, but cutting out that revenue is easier said than done. Place your bets on the buyer for “Copesan 2.0”.
There is too much to list here, but you won’t be disappointed as The Boardroom chats about deal risk spread, Terminix franchisees, auction theory, price discovery, and William Blair ratings. Connect with Tim by email at tmulrooney@williamblair.com. You’ve read this far so you too can put up with Patrick’s “low thinking”.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
