28th May 2025 08:46
(Alliance News) - Rentokil Initial PLC on Wednesday said it has agreed to sell its Workwear business in France to HIG Capital LLC at an enterprise value of around EUR410 million.
France Workwear comprises Crawley, West Sussex-based Rentokil Initial's workwear, flat linen and clean room business in France. HIG Capital is a Miami, Florida-based alternative asset manager focused on mid-cap companies.
The value of the business disposal includes an earn-out mechanism of up to EUR30 million linked to the Workwear unit's 2026 performance. Net cash proceeds to Rentokil are expected to be about EUR370 million, with the deal expected to complete in the fourth quarter of 2025.
The disposal will position Rentokil more clearly as a streamlined Pest and Hygiene & Wellbeing business, it said, "enabling the group to effectively concentrate resources to better capitalise on the large, attractive long-term growth markets within these core areas".
Around 80% of revenue for Rentokil will now be derived from its Pest unit and around 20% from Hygiene & Wellbeing.
Proceeds from the sale will be used for general corporate purposes, including investing for growth through bolt-on mergers and acquisitions.
"This transaction is a further important step in the execution of our strategy to focus the company on Pest Control and Hygiene & Wellbeing, where we are a market leader," said Chief Executive Andy Ransom. "Over recent years we have been reshaping our portfolio towards higher growth markets and lower capital expenditure operations."
Rentokil Initial shares were up 1.8% to 360.40 pence early Wednesday in London.
By Tom Waite, Alliance News editor
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