Pest Control Index Up 20% in February, PCO M&A Specialists, William Blair Report

NEWTON, N.J. – The total U.S. pest control index increased 19.7percent year-over-year in February, according to the latest report from William Blair/PCO M&A Specialists. On a sequential basis (from January 2022 to February 2022), the index increased 0.5 percent. This index includes recurring and nonrecurring revenue for residential pest, commercial pest and termite. It does not include residential door-to-door companies. The February result was 13 percent above the pre-COVID level in February 2020.

“This marks another month of abnormally high growth,” said Tim Mulrooney, equity researcher, William Blair. “We expect February will be the last month of above-average growth rates, and project a material deceleration in index growth rates beginning March 2022 due to more difficult comparisons with last year.”

This month’s performance was driven by strong year-over-year growth across all four subindices– residential, commercial, termite, and bed bug.

The Residential Pest Index increased 23 percent year-over-year and declined 2 percent on a sequential basis. The Commercial Pest Index increased 19 percent year-over-year and 1 percent on a sequential basis. The Wood Destroying (Termite) Index increased 18 percent year-over-year and 4 percent on a sequential basis. The Bed Bug Index increased 17 percent year-over-year and 2 percent on a sequential basis.

PCO M&A Specialists Managing Member Dan Gordon noted that price increases played a role in February’s results.

“A good part of the increase is due to businesses, including pest control companies, raising prices at the beginning of 2022 to keep in lock step with the inflationary environment,” he said.

View the full report and the archive of past reports at SellMyPCOBusiness.com.