Rentokil Initial has acquired Allgood Services of Georgia, Inc (which trades as “Allgood Pest Solutions”), headquartered in Atlanta, Georgia, and which also operates in Tennessee. It generated annualized revenues for the 12 months prior to acquisition of $26m (#29 in the PCT magazine list of the largest pest control companies in the USA).
Last year, Rentokil Initial acquired 17 businesses in North America, in line with the Company’s strategy to accelerate growth in its pest control business and to pursue acquisitions in higher growth markets. In particular, during the fourth quarter, the Company acquired Isotech Pest Management, a commercial pest control company with annualized revenues for the 12 months prior to acquisition of $13m. Isotech (#58 in the PCT Top 100 list) is a long-established pest control provider in Los Angeles and Orange Country, and is therefore an excellent density fit with the Company’s existing Western Exterminator business.
M&A in 2016
During 2016, the Company acquired a total of 41 businesses for £107m (35 in Pest Control) with combined annual revenues of £124m. In addition to the 17 companies acquired in North America, the Company acquired businesses in Australia, Austria, Brazil, Canada, Chile, China, Denmark, French Guiana, Germany, Guatemala, Honduras, Hong Kong, Malaysia, New Zealand, Republic of Ireland, Spain, Switzerland and the UK.
In 2017 year to date the Company has acquired 5 businesses – in the UK and Ireland, Australia and Singapore (four in pest control and one in property care) – with combined annual revenues of approximately £15m.
Andy Ransom, Chief Executive of Rentokil Initial, commented:
“Allgood is an outstanding business with an excellent reputation for customer service and high levels of customer retention. The acquisition is designed to build scale and customer density in the states of Georgia and Tennessee where the warmer climate means a higher pest intensity.
“In 2016 we acquired 41 businesses, primarily in our Growth and Emerging markets, and our pipeline of acquisitions remains particularly strong.”
