Copesan Initiates Disengagement With J.C. Ehrlich/Rentokil and Presto-X

MENOMONEE FALLS, Wis. — Copesan Services announced that it had initiated the termination of its association with its stockholder Partners J.C. Ehrlich/Rentokil and Presto-X. 

“After the purchase of J.C. Ehrlich by Rentokil in 2006, the combined operation of J.C. Ehrlich/Rentokil remained a beneficial fit for both our organizations. However, with the recent acquisition of Presto-X, their new, combined geographic footprint, along with their stated goal to be a national player in the United States, has put Copesan into a competitive situation that we could no longer continue to overlook,” said Alfie Treleven, president of Sprague Pest Solutions, Tacoma, Wash., and chairman of Copesan’s Board of Directors. “After many years together as joined forces, the time has come for our organizations to part ways and pursue our individual company goals.”

Victor Hammel, president of J.C. Ehrlich and CEO of Rentokil Pest Control North America, said that neither he nor Presto-X President Ward Combs were surprised by the decision, but they were “taken aback by the timing.”

With the acquisition of J.C. Ehrlich and Presto-X, Rentokil had planned to grow in partnership with the Copesan network.

While the disengagement of the J.C. Ehrlich/Rentokil and Presto-X organizations may be in the best long-term interest of Copesan, that’s not to say it was an easy decision for all parties involved, both from a personal and professional standpoint. Treleven told PCT that leaders of J.C. Ehrlich Co. (Bobby and Victor Hammel) — and Presto-X leaders Ward Combs II and his wife Judy; Jerry and Jerry Anne Keown — have been close friends and their contributions have been instrumental to the success of Copesan and Sprague Pest Solutions.

 “There was a buzzword in the 90s called ‘co-opetition,’” Treleven said. “You compete sometimes, you work together sometimes. At some point down life’s road it was just going to be competing. Thinking and acting strategically the board deliberated for a long time on this and looked at many different ways for this to work. Eventually it just came down to the realization that sometime in the future, whether it was today or 18 months from today or longer, it just strategically wasn’t going to be a good fit.”

Hammel expressed similar sentiments in a statement released by Ehrlich/Rentokil/Presto-X. “Presto-X and J.C. Ehrlich both gained a lot from Copesan in our 45-year relationship,” he said. “Many of the Copesan members are personal friends, and we only regret that we are now on a path to become competitors.”

WHAT’S NEXT? Leadership from the Copesan, J.C. Ehrlich/Rentokil and Presto-X organizations will meet to discuss the transition of the business and its associated timelines. “Our primary focus at this point is on the methodical transition of the Copesan accounts to their new service Partner and on maintaining uninterrupted, quality service at every client location,” said Copesan President Deni Naumann.

Mike Campbell, Copesan vice president of operations, said Copesan already has a transition plan in progress for the accounts that J.C. Ehrlich/Rentokil/Presto-X are servicing.

While Copesan’s Naumann did not specify which companies will take over the service of Copesan accounts serviced by J.C. Ehrlich and Presto-X, she told PCT that many of the Copesan Partners that are established as secondary Partners, providing redundant service capabilities in those geographies, are looking forward to the opportunities that are available to them as primary service providers.

 “For those that will be receiving the business, it helps them fill their routes, it creates service revenue for them. Their sales teams are very excited to be engaged in the process,” she said. “If you go back and look at how the business model works, for the Partner that sells the business they have the first right of refusal to service any location in their service territory. Those Partners that are moving into that primary territory are very excited. It’s a wonderful opportunity for them to grow within the organization.”

 Hammel and Combs said they see a silver lining in gaining their independence because it “greatly expands our opportunities to work with a wider range of pest management companies.” Hammel said. “We welcome quality companies who wish to join Presto-X, J. C. Ehrlich and our family of companies as either service partners or for possible acquisition.”

Combs added that both J.C. Ehrlich and Presto-X will honor all service commitments in keeping with the spirit of their Copesan partnership. “The customer has been – and always will be – our top priority."