Rentokil Initial Plc has entered into a purchase agreement to acquire the pest control division of Green Compliance Plc for a total consideration of £4.0m in cash: £3.25m in initial consideration, with a further £0.75m payable over 12 months in line with normal contractual protections and the achievement of certain operational targets.
The acquired pest control business, which provides pest and bird control, flyscreen and cleaning services, generated revenues of £5m in the year ended March 31st.
The transaction, expected to be completed by the end of 2013, will see Green Compliance return cash to shareholders and partially pay down debt next year.
“The board are committed to the continued growth of its market leading Water and Fire Suppression businesses and believe that they will provide a sustainable base for the future development of the group,” Green Compliance said.
