[Cover Story] A Different Approach to Acquisitions

The Steritech Group, Charlotte, N.C., is unique in the pest control industry in that the company is almost 100 percent commercial. This strategy has enabled the company to develop systems and procedures that have resulted in strong organic growth, but it also requires Steritech to approach acquisitions differently.

“Since we are primarily a commercial company, we look for similar companies — companies whose service mix is 65 percent or more commercial — so we have a much smaller pool of companies to choose from,” said Eric Eicher, a founding partner of Steritech.

In the past year, Steritech’s only acquisition was Central States Fumigation & Services, Salina, Kan. In fact, Eicher said that in Steritech’s history the company has made a total of five acquisitions that have represented less than five percent of its overall growth.

When the company does make acquisitions it looks for partners with similar cultures. “I think the mistake companies make is acquiring companies where the cultures might clash,” Eicher said. “We look for companies that have low employee turnover, that treat their employees well, that are fanatical about the quality of service they provide and that present a professional image.”

Eicher added that companies Steritech acquires are allowed to run “pretty much autonomously” from an operational standpoint. — Brad Harbison