OUTSOURCED SERVICE MARKET NEWS AND ANALYSIS
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ABM devotes £192k of unspent levy funds to create apprenticeships
Serco exercises right to quit soft services deal with Barts Health Trust a year early
Engie agrrees to sell its services unit to Bouygues for €7.1 billion.
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Rentokil seeks global lead role in pest control with US acquisition by Marino Donati
PHOTOGRAPHY: TERMINIX
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entokil Initial is to buy US pest control business Terminix in a $6.7 billion deal. The transaction will bring the two businesses together to create what the firms claim will be a “global leader” in pest control with the two companies having an estimated combined pro forma revenue of around $5.7 billion last year. Under the deal, Rentokil Initial will acquire Terminix for stock and cash. The combined group, which
will be based in the UK, expects to ‘create increased scale in the global pest control market, increased scale in North America – and provide an enlarged platform for profitable growth’. It is also expected to generate ‘material annual pre-tax net cost synergies’ of at least US$150 million by the third full-year post-completion. In a statement, Rentokil said it expected to “have a strong platform for growth, particularly in North America, and an attractive financial profile to support future growth, including through acquisitions and continued investment in innovation and technology.” Andy Ransom, CEO of Rentokil Initial, added: “This is an exciting and transformational combination that will create the global leader in commercial, residential and termite pest control, and a leader in North America, the world’s largest pest control market. It brings together circa 56,000 colleagues, protecting people, enhancing lives in over 87 countries, and serving circa 4.9 million customers.” The boards of directors of both Terminix and Rentokil Initial have unanimously approved the transaction.and resolved to recommend that their respective shareholders vote in favour of it.
This is an exciting and transformational combination
BIDVEST NOONAN CREATES TRANSPORT UNIT Bidvest Noonan is to create a specialist business unit focusing on the UK’s transport sector. The division will provide services including cleaning, security, shunting, refuelling and sanitising among others, with the firm having amassed considerable experience supporting many of the UK’s largest bus and rail operators. Colin Marshall, who previously served on the leadership team of Cordant Services, has been named managing director of the division. The company said it aimed “to cement its position in the sector and establish a strong platform for its continued growth and development”. Charlotte Marshall, CEO of Bidvest Noonan in the UK, added: “Establishing a sector-dedicated business unit will enable us to improve our performance,, innovate faster and accelerate our growth”. The company spent plenty of time on the acquisition trail in the UK and Ireland during 2021. It bought security specialist Axis Group in early February, and in March announced its takeover of Dublin-based hard FM provider Interact.. In March, Bidvest Noonan appointed James Dunnett as director of operations for facilities solutions.
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