Pest Index 6 Percent in May

The total U.S. William Blair/PCO Bookkeepers & M&A Specialists Pest Index increased 6 percent year-over-year in June, showing a strong deceleration from the 14 percent growth observed in May.

PCO Bookkeepers William Blair logo

The total U.S. William Blair/PCO Bookkeepers & M&A Specialists Pest Index increased 6 percent year-over-year in June, showing a strong deceleration from the 14 percent growth observed in May. June’s results are below the long-term average index growth rate of 11 percent. The total pest index reading of 6 percent is the lowest reading observed since February 2021.
 
“This result will likely not come as a surprise to investors, given the slowdown in organic growth observed at Rollins (9.8 percent in the first quarter, 8.1 percent in the second quarter) and Rentokil’s North American Pest business (4.9 percent in the first quarter, 4.8 percent for the first half),” says William Blair Equity Researcher Tim Mulrooney. “Specifically, Rollins said that account activity trailed off in the second half of June due to cooler weather, and Rentokil disclosed “lower industrywide lead flow from residential and termite customers.” 
 
Dan Gordon, managing member of PCO Bookkeepers & M&A Specialists, adds, “While the growth number is significantly lower than in prior months, I think we need to give it another couple of months to determine if this is a trend or an anomaly.”
 
The June results by segment include:  
 
• The Residential Pest Index increased 7 percent year-over-year.
• The Commercial Pest Index increased 13 percent year-over-year.
• The Termite Index increased 2 percent year-over-year.
• The Bed Bug Index increased 7 percent year-over-year.

• The Mosquito Index decreased 17 percent year-over-year.

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