Rentokil will acquire termite group Terminix, as it seeks to become a global leader in pest control while increasing market share in the United States.
The companies agreed to a deal valuing Terminix’s equity at $6.7 billion, or $55 per share. That’s a premium of 47% from Monday’s closing price.
Brett Ponton, Terminix chief executive officer, said: “This is an exciting next step that significantly accelerates Terminix’s journey towards becoming a global leader in pest management.
Rentokil will pay about $1.3 billion in cash to Terminix shareholders and the rest in stock, the company said in a statement Tuesday.
Rentokil CEO Andy Ransom said: “These are two highly complementary businesses with a similar operating style of play. “We will open our first innovation hub in the United States and deliver our industry-leading digital innovations and technologies to a much larger customer base.”
