On Feb. 28, Rentokil CEO Andy Ransom announced 2013 preliminary results. For 2013, the company’s revenue rose 3.2 percent, driven largely by Rentokil’s North American pest control business.
Ransom also announced that Rentokil is selling Initial Facilities to Interserve Plc (IRV), a provider of cleaning and security services, for $418 million to focus on improving profitability and growth at its pest, hygiene and workwear businesses. “It was clear that this business was not core to Rentokil,” he said. “It’s UK-based and we are focused on expanding into the emerging markets and the US. It also operates at a lower margin point than the rest of our business.”
Ransom noted that Rentokil Pest Control was the company’s lead category, representing 35% of group revenues. It has leading positions in most markets including Europe, Asia and Pacific, and Rentokil will be using pest operations as a vehicle for entering new markets (e.g., emerging economies of Brazil and Turkey). Ransom added that Rentokil is “looking to capitalize on North American growth opportunity to enhance our national accounts infrastructure.
INTERNATIONALACQUISITION. On March 5, Rentokil Initial announced it bought Chilean pest-control firm Bestway for an undisclosed sum to expand its Latin American business.
"We have been targeting Chile as the next step in our Latin America expansion strategy following acquisitions in Mexico and Brazil, both of which are performing ahead of our expectations," Ransom said.
Bestway had revenue of $18.39 million in 2013, employs 274 people and brings a local management team, led by Chief Executive Gerardo Guzman, into the company, Rentokil said. Bestway is the market leader in hygiene services and the third largest provider of pest control services in Chile, it added.