Rentokil is to acquire Terminix and the companies have agreed to a deal that values Terminix’s equity at $6.7 billion (£5.07bn), or $55 (£41.61) per share, a premium of 47% on Monday’s closing price.
Terminix chief executive Brett Ponton said: “This is an exciting next step that significantly advances Terminix’s journey towards becoming a global leader in pest management.:
Rentokil will pay around $1.3bn (£980,000) in cash to Terminix shareholders and the rest in shares, the company said in a statement on Tuesday.
Rentokil chief executive Andy Ransom added: “These are two highly complementary businesses with a similar operational playbook.
“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.”
The companies expect the transaction to close in the second half of 2022. In line with Rentokil’s undertakings to the Competition & Markets Authority, Terminix will dispose of its UK business prior to completion of the transaction.