12th Jun 2006 08:09
Rentokil Initial PLC12 June 2006 12 June 2006 COMPLETION OF MANNED GUARDING DISPOSAL PROCESS Rentokil Initial plc ("Rentokil") today announces that it has signed anagreement for the sale of its US manned guarding business, Initial Security LLC,to Allied Security Holdings, LLC for a cash consideration of $73.6 million(£40.0 million(1)), subject to certain completion adjustments. Completion,which is subject to a number of regulatory conditions, is expected in August. On 8 February Rentokil announced that it was exploring the possibility ofdisposing of the group's manned guarding operations to other parties whosestrategic focus and/or investment priorities will mean they are more able torealise the full potential of this business. The sale of the US operations completes the strategic exercise to exit themanned guarding market, having sold the UK, Canadian and Belgian operationsearlier this year. The financial performance of the four combined businesses for the year to 31December 2005 was as follows: revenue £365.2 million (2004: £331.6 million);operating profit (before amortisation of customer lists and exceptional items)£14.2 million (2004: £14.0 million). Total consideration from the four disposals amounts to £150.9 million. Doug Flynn, Chief Executive of Rentokil, commented: "Completion of the manned guarding disposal process is a further important stepin the development of our company. We have achieved a good result for ourshareholders and will continue to focus our activities on enhancing shareholdervalue." Enquiries Rentokil Initial plc, Tel. +44 (0) 20 7866 3000Mark Boyle, Group Strategy & Development DirectorLisa Williams, Investor Relations Manager Brunswick Group LLP, Tel. +44 (0) 20 7404 5959Kate HolgateJon Rhodes Notes to Editors 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 has some 80,000 employees providing a range of supportservices in over 40 countries where the 'Rentokil' and 'Initial' brands havecome to represent innovation, deep expertise and consistent quality of service.Services include textiles and washroom services, pest control, tropical plants,electronic security, parcels delivery and facilities services. -------------------------- (1) Based on a US$/GBP exchange rate of 1.83895. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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