7th Jul 2016 06:50
LONDON (Alliance News) - Pest control and business services company Rentokil Initial PLC on Thursday said it has agreed a new acquisition in the US and signed a two-year deal with a US health agency to fight the Zika virus.
Rentokil said it has won a contract from the US Centers for Disease Control & Prevention to help control the species of mosquito that could potentially carry the Zika virus. Rentokil will provide pest control services under the contract until June 2018, though no financial details on the contract were disclosed.
Rentokil also said it had acquired pest control and turf products distribution company Residex LLC for USD30.0 million in cash. The acquisition will more than double the size of Rentokil's existing pest and turf products business and make it the second-largest business of this kind in the US market.
In addition to the contract and acquisition, Rentokil said trading in the first half of 2016 was in line with its expectations and its forecast for the year are unchanged.
Rentokil said around 90% of its revenue is generated outside the UK and, following the weakness in sterling following the UK's vote to leave the European Union, the group anticipates it will get a translational currency benefit to its profit for 2016 of GBP25 million to GBP30 million, up GBP10 million to GBP15 million from its previous guidance.
Rentokil will publish interim results on July 28.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Rentokil Initial