Brexit will boost Rentokil Initial profits, firm enters Zika fieldStaff Writer | July 7, 2016
Rentokil Initial said the fall in sterling post Brexit would boost 2016 profits by £25m - £30m, a rise of £10m - £15m on previous guidance.
Rentokil Initial A series of announcements
Rentokil said it had bought pest control and turf products distribution business Residex for $30m. The company is the largest independent products distribution company in the U.S., with annualised revenues for the 12 months prior to acquisition of $113m.
"The acquisition increases the scale of the company's existing pest and turf products business, which more than doubles in size. It creates the second largest business of this type in the US market, delivering national coverage and a greater density footprint," Rentokil said.
In a second U.S. deal, Rentokil said the Centers for Disease Control and Prevention had awarded the company a two-year contract to help control the species of mosquito that could potentially carry the Zika virus across the USA and its protectorates. ■