17th Jul 2007 07:00
Rentokil Initial PLC17 July 2007 17 July, 2007 Rentokil Initial acquires Lancaster Office Cleaning Company Rentokil Initial plc (LSE: RTO) today announces that it has completed theacquisition of the entire issued share capital of Lancaster Office CleaningCompany Ltd ("Lancaster") for a total consideration of £19.0m. Lancaster is a leading provider of high quality cleaning and support services tothe Greater London area, with a particular focus on the City, where it countsnumerous blue chip companies among its client base. The company has anexperienced management team and has grown revenue strongly. Turnover for theyear ended 31 July 2006 was £45 million, up 14.5% year on year. Lancaster, which employed an average of 3,600 people during 2006, is anexcellent operational fit with the existing cleaning services provided byInitial Facilities Services. The acquisition strengthens Initial's position inthe City, while providing opportunities for cross selling of other services suchas washrooms, pest control and office plants, particularly into clients withinthe financial services sector. In 2006, Initial Facilities Services saw revenues increase by 10.6% to £519million, of which 63% was related to cleaning services. Peter Lloyd, Divisional Managing Director of Initial Facilities Services said:"The strength of the Lancaster brand, its strong presence in the Londonmetropolitan area, its blue chip customer base and the company's proven andexperienced management team all combine to make this an excellent acquisition.Lancaster is an ideal fit with our existing business." Ends Lancaster Office Cleaning Company Ltd The company was established in 1976 by the Lancaster brothers. It is the mostprominent provider of cleaning and support services to blue chip clients withinthe City and Canary Wharf. Post acquisition, Lancaster will continue to operateunder its own brand name and under the direction of Ray Lancaster and thecurrent senior management team. Rentokil Initial Rentokil Initial is one of the largest business services companies in the world,operating in all the major economies of Europe, North America, Asia Pacific andAfrica. The company provides a range of support services in over 40 countrieswhere the 'Rentokil' and 'Initial' brands represent innovation, deep expertiseand consistent quality of service. Services include textiles and washroomservices, pest control, office plants and artwork, express parcel delivery, IThygiene and facilities services. For further information, please contact Rentokil Initial plcMalcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199 Brunswick GroupTeresa Bianchi - 020 7404 5959 / 07834502477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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