Rentokil to buy US extermination specialist Terminix in $6.7bn deal

Rentokil is to acquire extermination group Terminix, as it seeks to become a global leader in pest control while increasing its US market share.

The companies have agreed to a deal that values Terminix’s equity at $6.7bn, or $55 per share. That is a premium of 47 per cent to Monday’s closing price.

“This is an exciting next step that significantly advances Terminix’s journey towards becoming a global leader in pest management,” said Terminix chief executive Brett Ponton.

Rentokil will pay about $1.3bn in cash to Terminix shareholders and the rest in shares, the company said in a statement on Tuesday.

“These are two highly complementary businesses with a similar operational playbook,” said Rentokil chief executive Andy Ransom. “We will open our first innovation centre in the US and provide our industry-leading innovations and digital technologies to a far larger customer base.”