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Rentokil Initial PLC
RTO,
said on Tuesday that it will buy Terminix Global Holdings Inc. for $1.3 billion in cash and 643.3 million new Rentokil initial shares in a deal that values the U.S. company at $6.7 billion.
Terminix
TMX,
is a Tennessee-based provider of residential and commercial pest control services.
London-listed Rentokil said the combined group is expected to generate material annual pre-tax net cost synergies of at least $150 million by the third year after completion.
The pest-control, hygiene and work-wear services provider said the combined group will have around 4.9 million customers as well as complementary strengths and capabilities.
Rentokil said it expects the conditional transaction to close in the second half of 2022.
“Rentokil Initial has entered into a committed bridge facility for up to $2.7 billion with Barclays to support the financing of the cash consideration, refinancing of existing Terminix debt, and to pay fees associated with the Transaction,” the company said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
