Rentokil is largely growing in North America, and part of its expansion initiative is striking a deal to acquire Steritech. The deal is subject to regulatory approval, and it will reportedly strengthen the company's position in the pest control market.
Rentokil's $425 million worth of acquisition with Steritech, bring the company's market worth to $7.5 billion, Reuters' reported. Rentokil North America is currently the biggest operation in the group, with a revenue now accounting for $800 million.
The company holds the third spot as pest control business in the United States, and the acquisition is believed to strengthen the hold in that position. In addition, it is anticipated that the deal will make the company as the third largest pest control group in Canada, according to Digital Look.
Over the past 18 months, Rentokil has reportedly made 40 acquisitions. 20 of the said purchases were made in North America.
Chief Executive Andy Ransom called the acquisition deal as a rare and transformational opportunity.
"This is a rare opportunity to acquire a high-quality business with national scale in this key target growth market," Ransom said.
"The deal is in line with our growth strategy and will be transformational for the pest control specialist in North America, providing us with the opportunity to further accelerate our revenue growth and significantly enhance margins," he added.
The deal will reportedly bring a new market place for Rentokil — model requirement auditing for meals and catering industries, The Times learned.
The company is eager to make an entry with the enterprise, which deals with evaluating meals' security and the supply as well as buyer satisfaction. The company said this aspect is still underdeveloped.
The major British business group was founded by Harold Maxwell-Lefroy, who had been in search for ways to kill the Death watch beetles that swarm the Westminster Hall in 1927.
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