Humans move ants. And now with warmer temperatures becoming the norm, the pests have a lot more suitable places to settle down, say entomologists and pest management professionals.
“Warming environments are favorable for ants. They reproduce faster, they have more to eat and more opportunities to be pests when the environment is warmer. They’re going to do nothing but increase,” said John Cooksey, COO of McCall Service, Jacksonville, Fla., who expects to see more invasive ants entering the scene, as well.
One of these is the little yellow ant (Plagiolepis alluaudi), a Madagascar native, recently found in Fort Lauderdale, Fla. Entomologists also reported higher numbers of ghost ants (Tapinoma melanocphalum) in greater Houston and Aphaenogaster ants, or winnow ants, around structures in parts of Tennessee. “Maybe it’s nothing; maybe climate change is affecting the species that we have closer to the structure now,” said Dr. Karen Vail, University of Tennessee urban entomologist on observing more Aphaenogaster ants.
In Hawaii, introduced odorous house ants (OHA) have established supercolonies that could disrupt the natural ecosystem. Warmer temps in Illinois have been a boon to OHA, as well. “The ants have adapted dramatically to this part of the country (in ways) that we have not seen 10, 15 years ago,” said Gary Pietrucha, president, Envirosafe Pest Management, Itasca, Ill.
Favorable climate conditions also are helping the red imported fire ant continue to spread across North Carolina, reported N.C. State University. The state quarantine for the pest now includes portions or entire areas of 75 counties.
Cooksey has his hands full with the invasive tawny crazy ant, which forms mega-colonies that can encompass several acres. Treating one house for the pest when the colony covers the entire subdivision isn’t going to get rid of the problem, he said. “What it takes is a large-scale baiting program over a couple of acres instead of a couple of thousand square feet, which is what we normally contract,” said Cooksey.
He has achieved control at large commercial facilities, such as industrial warehouse and food-processing complexes, using liquid bait outdoors in stations designed to prevent the ants from falling in and fouling the bait.
Because they’re so difficult to control, tawny crazy ants are not covered in McCall Service’s annual contract. Explaining this to clients requires excellent communication skills, said Cooksey.
Celebrating 40 years as a valued industry resource, PestSure insures over 80 pest control companies representing $1.7 billion in revenue, $630 million in payroll and more than 14,000 vehicles.
Todd E. Burke, Chief Operating Officer, PestSure
1. Tell us about PestSure.
Think of PestSure as the pest control industry’s very own full-service insurance company, owned and operated by PMPs. Our resources are dedicated to account management, contract review, certificates, loss prevention and claims. We are much different than a traditional insurance market or program, as we control the underwriting and humanize the insurance side of the business. Pest control is all that we do.
2. What is your No. 1 recommendation to PMPs to protect their business in today’s challenging legal environment?
Most PMPs are underinsured when it comes to umbrella coverage. They simply do not have enough coverage to protect themselves in the event of a large auto liability claim. We have seen several multimillion-dollar auto liability settlements recently and expect this trend to continue. We advise at least $5 million in umbrella limits to properly protect your business. Our insureds carry anywhere from $2 million to $35 million in umbrella limits.
3. How do successful PMPs reduce their claims and lower their insurance premiums?
The insureds who truly focus on their safety culture and hiring practices tend to have the best results. This means having an internal team or individual focused on helping create this culture. These are generally the companies with the lowest loss ratios and premium rates.
4. Which important insurance coverages are often overlooked?
We recommend employment practices liability to protect wrongful acts in the employment process. It protects against claims made by employees alleging discrimination, wrongful termination and harassment. The other critical coverage to have is cyber liability, which protects your company in the event of a data breach. This includes customers’ and employees’ personal and private information. Every company has exposure in these areas.
5. What do you see as the most challenging area pertaining to claims?
Automobile claims are the most frequent and problematic for the industry. Our No. 1 cause of loss is rear-end collisions—usually a result of distracted driving. To be proactive, Linda Midyett, our director of loss prevention, works with our insureds to help lower occurrence ratios and prevent accidents. PestSure members also have access to a plethora of safety information on our website that helps them reduce risk.
Breaking News: New to Next Year’s List: Certus
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On May 1 it was announced that a new private equity-backed firm, Certus, has taken a seat at the M&A table with the acquisition of two Seattle, Wash., companies: Eco Elite Pest Control and Mathis Exterminating.
There’s a new private equity investor in the pest management industry: Toronto-based Imperial Capital Group.
Need more proof that merger and acquisition activity in the pest control industry is continuing at a brisk pace? Look no further than the May 1 announcement that a new private equity-backed firm, Certus, has taken a seat at the M&A table with the acquisition of two Seattle area companies: Eco Elite Pest Control and Mathis Exterminating. The firms together employ about 100 people and will have combined revenues of $10 million.
Mike Givlin
CERTUS BACKGROUND. The formation of Certus was the brainchild of CEO and co-founder Mike Givlin, a former executive with Steritech and Anticimex U.S. Givlin, along with Ben Kaplan, former CFO of Anticimex U.S., researched more than 100 private equity firms — meeting face-to-face with 20 of them — before choosing Imperial Capital Group (ICG), a mid-market private equity firm based in Toronto. “We determined that Imperial was a great group of individuals with priorities in the right place,” Givlin told PCT in late April. “It was a company that could help us reach our goal, which is to make it in the top 5 on the PCT Top 100 list in the next 10 years.”
With 30 years of investing history, including 26 past and current platform investments, hundreds of add-on acquisitions, and more than $1.5 billion of assets under management, ICG is currently investing from its recently launched Fund VII with $650 million of commitments.
“Entering the pest control industry made a lot of sense for us given the attractive industry dynamics and the fit with our investment expertise,” said Gene Shkolnik, principal at ICG. “Our expertise is people; partnering with a strong industry leader like Mike Givlin is an investment we are excited to make. Beyond people, we think Certus has many distinctive advantages that other acquirers cannot offer, which will ultimately make us successful.”
Givlin said Imperial Capital had previously shown an interest in the pest control market, but had not found the right fit; Certus checked off most of their boxes, he added. ICG does have experience with route-based businesses, including Gateway, a pet cremation business.
Brandon Bradshaw, owner, Eco Elite Pest Control.
ACQUISITION STRATEGY. The Certus strategy is to make majority investments in leading regional pest control companies; existing leadership will continue as owners and partners. Transactions include cash on closing, as well as shared equity in Certus for the go-forward regional presidents who will be tasked with leading their regional growth both organically and through “bolt-on” acquisitions.
While Certus has plans for national expansion in late 2019, it currently is focused on partnerships on the West Coast of the United States. “We liked the West Coast. There are a lot of great [PCOs] but there are not a lot of big, regional players. We think there are [PCOs] interested in selling, but they might not be interested in [selling to] one of the bigger ones,” Givlin told PCT.
To explore West Coast opportunities, Givlin turned to consultant Kemp Anderson, Kemp Anderson Consulting. Anderson connected Givlin with Eco Elite Pest Control and Mathis Exterminating.
On April 30, Certus closed the acquisition of Mathis Exterminating. Damon Martin founded the company in 1992 and has been offering pest control services in the cities of Seattle, Tacoma, Olympia and Bremerton, Wash. Mathis is led by CEO Elmer Bensinger, who is past president of the Washington State Pest Management Association (2016).
Mathis Exterminating CEO Elmer Bensinger (left) and Founder Damon Martin (right).
One day later, on May 1, Certus announced the acquisition of Eco Elite Pest Control, which was founded in 2008 by current owner, Brandon Bradshaw. Eco Elite serves Washington’s King County, Pierce County and Snohomish County, including the cities of Seattle, Bellevue, Tacoma and Kent.
“When I first connected with Kemp, I was not looking to sell my business; I was just trying to get a better understanding of what it was worth,” said Bradshaw. “But after meeting with Mike, and hearing the Certus vision, I realized this was not only a great opportunity for myself, but also for all of my employees.”
Givlin said the two pest control companies complement each other well.
“They are quality companies that share our values of honesty, integrity and commitment to people. Where one company has a weakness the other has a strength,” he said. “We think they are a natural fit to combine forces and make for a good platform company for us.” — Brad Harbison
Stephanie Dickson Named President of McCloud Services
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Dickson has been at the company for more than 20 years.
McCloud Services, South Elgin, Ill., announced that Stephanie Dickson has been promoted to president.
“We are proud to announce Stephanie’s promotion to president,” said Chris McCloud, chief executive officer of McCloud Services. “With over 20 years of service to the company, Stephanie has been a successful and strategic leader within McCloud. Her strategic thinking capabilities, expertise and strong business acumen have contributed to the solid execution of our operational strategies and substantial growth in our commercial pest management segment. Stephanie’s vision and leadership have been integral to our success and we are thrilled for her to take the next step forward in her career.”
Dickson
Dickson has served the pest management industry for nearly 30 years. She earned a bachelor’s degree in entomology from Texas A&M University in College Station, Texas. She is also a graduate of the 1997-98 Kellogg Foundation Leadership Program, a 2011 graduate of the GAP International Executive Challenge Course, and has completed the University of Chicago Booth School of Business Executive Program in Strategic Sales Management.
In addition, Dickson is a member of the Copesan Sales Committee, Pi Chi Omega and serves on the Executive Peer Advisory Group of the Loyola Family Business Center.
Eastside Exterminators, Woodinville, Wash., is celebrating its 50th anniversary in 2019.
Since 1969, Eastside Exterminators says it has committed itself to protecting homes and families from pests of all kinds. The company vision, “Our Family Protecting Families,” is the foundation of the Eastside culture, the firm says. The company has been family-owned since its inception, and President Deanna Townsend and CEO Alex Altizer are second-generation owners.
The entire Eastside Exterminators team in front of the company’s building in Woodinville, Wash. The company has grown to more than 90 employees.
“Helping customers solve their pest problems has always been my passion,” Deanna Townsend said. “When I get to help that customer with a difficult infestation, or pass my knowledge on to a technician, it makes me happy and proud to know that I am making a difference.”
In 1969, Eastside Exterminators began as a one-man pest control operation, and has grown to more than 90 employees today.
“What I am most proud of is seeing our family grow and people prosper,” Alex Altizer said. “In my 19 years with Eastside, I have seen employees come in for a job and turn it into a career. The heart of our company is our employees, and when they are taken care of, they take care of the customers.”
Eastside’s rich history is reflected in its company Core Values: Family Focused, Passionate, Committed and Do The Right Thing. The company says every employee in the Eastside family has been chosen to exemplify these values, and to help Eastside continue growing for another 50 years.
Throughout 2019, Eastside will celebrate its milestone birthday with events, promotions, giveaways and philanthropic work.
