Rentokil to buy pest-control rival Terminix in US$6.7b deal

[LONDON] Rentokil Initial, the pest-control company, agreed to buy Terminix Global Holdings to expand in the US, the world's largest market.

The stock-and-cash transaction values the company at US$6.7 billion with an implied value of US$55 per share, Rentokil said in a statement. That's a premium of 47 per cent over Terminix's last closing price.

Both boards backed the transaction. Terminix, which offers to rid houses of species ranging from rats and cockroaches to scorpions and silverfish, is the most recognised brand in US termite and pest-management services, allowing Rentokil to expand as well as cut costs. Its shareholders will own about 26% of the enlarged company.

Under the terms of the agreement, Rentokil will issue about 643 million new shares, including American depositary shares.

BLOOMBERG