Acquisitions Payback for Rentokil Initial
Rentokil Initial has posted a 9.8 per cent increase in ongoing full-year 2019 revenues and its highest organic growth for 15 years on the back of the acquisition of 41 businesses in high-growth and Emerging markets, and 16 businesses in North America.
The FTSE 100 pest control and support services company also reported a full-year acquisitions spend of £451 was offset by the divestment of its 17.8 per cent stake in washroom solutions provider, CWS-boco International GmbH to Haniel in July.
Florida Pest Control – the British multinational’s largest acquisition in 2019, contributed £50 million out of the total of £238 million generated by new acquisitions.
Commenting on the results, Rentokil Initial Plc CEO, Andy Ransom, said:
“The Company performed strongly in 2019 with a combination of above-target Organic growth and disciplined execution of M&A. Organic growth was driven by our increasing presence in growth markets, higher levels of customer retention and a strong innovation programme. In particular, our employer of choice programme continues to deliver outstanding results with increased levels of safety, training, motivation and retention of our colleagues.
“Looking forward into the new decade, key demographic trends such as urbanisation will enlarge our global pest control and hygiene markets, while we continue to focus on the relentless execution of our plan. We are confident of delivering further operational and financial progress in 2020.”