19th Mar 2015 07:39
LONDON (Alliance News) - Rentokil Initial PLC on Thursday said it has expanded its pest control business with the acquisition of US firm Eradico Services Inc and Sagrip SA, which will give the company a presence in the Guatemala and El Salvador markets.
The FTSE 250-listed business services company did not provide any financial details on the acquisitions, but said the two businesses produced combined annual revenue of GBP7.3 million in the 12 months prior to the acquisition.
"We are delighted with the acquisitions announced today. They are in line with our differentiated strategy for growth and emerging markets. Eradico is a high quality, well run business, adding to our national coverage in the USA. It also has expertise in mosquito control that will add value to our customer base," said Rentokil Chief Executive Andy Ransom.
"The acquisition of Sagrip provides us with our first steps into the main cities of Guatemala and El Salvador, and continues our expansion into new emerging economies following market entries into Brazil, Chile and Colombia. We also have opportunities to build on our existing customer relationships in Mexico where their operations extend further south," Ransom added.
Rentokil also said it has completed the issue of EUR50 million in floating rate notes due 2018. The proceeds are to be used for general corporate purposes, it said, including the repayment of existing debt.
By Sam Unsted; [email protected]; @SamUAtAlliance
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