LONDON — In a series of presentations led by Andy Ransom, CEO of Rentokil Initial announced that the company sees Hygiene & Wellbeing as being the “new Pest Control.” To be introduced on Jan. 1, 2022, a new category is to be established for Hygiene & Wellbeing, putting it on an equal footing to Pest Control.
The announcement was made at a meeting held in London, to an invited group of financial journalists and analysts on September 28, 2021. Ransom was accompanied in person by nine company directors, plus three from overseas who joined virtually.
The company announced it had increased its organic medium-term revenue growth target from 2022 to between 4% and 5% from the previous target of 3%-4%. Likewise, the ongoing revenue target forecasted is to between 6-9% from 5-8% before.
Ransom said, “Following the Covid-19 pandemic, the public’s attitudes to health, hygiene and wellbeing has changed forever.” These opinions were backed-up by a global hygiene survey undertaken in June 2021 covering 20 countries worldwide, with over 20,000 respondents.
Just as in Pest Control, the market drivers for Hygiene & Wellbeing are the same, namely: an increasing urban middle-class population; ever-tightening regulations and standards, particularly with air quality accompanied by the public’s new attitudes to health and hygiene.
Based on the existing Pest Control business, Ransom said, “We have the operational model in place, global scale and large existing customer base, innovation and digital expertise, people and brand.”
In North America, the plan is to build a premises hygiene business under the Ambius brand from a zero base.
Chris Hunt, M&A director explained how Hygiene bolt-on acquisitions are remarkably similar to Pest Control and the same disciplined and targeted approach will be implemented. Already approximately 80 targets are in place with annualized revenues of £25m+ ($34m+) p.a. forecast, in addition to the potential for larger transactions, if available.