Rentokil to acquire the Steritech Group

Editor’s Note: Updated Sept. 2 at 4:30 p.m. EDT to reflect interview with John Myers, president and CEO of Rentokil North America. 

Rentokil Initial has agreed to acquire the Steritech Group, which operates in both the United States and Canada. It has agreed to pay $425 million in cash, subject to U.S. regulatory approval under the Hart-Scott-Rodino (HSR) Act, which will take approximately 30 days or more.

“For some time, we have been pursuing a growth strategy in North America, the world’s largest pest control market, with Steritech at the top of our target list,” Andy Ransom, chief executive of Rentokil Initial, said in a news release. “It has an outstanding management team with a proven track record and a reputation founded on technical expertise and a premium service, similar to ours. It is also highly geographically complementary to our existing U.S. business.”

The Steritech Group was founded in 1986 and provides pest prevention, food safety and quality assurance services. It also offers food safety and operational audits to companies in the restaurant and supermarket industries.

“Both Rentokil and Steritech have powerful brands with strong brand equity,” John Myers, president and CEO of Rentokil North America, tells PMP magazine. “Going forward, we want to ensure that we are being good stewards of the value that these brands afford us. Clearly, Rentokil has global brand presence and cache. Steritech has built a powerful presence in the U.S. and Canada. Once we have secured the proper regulatory approval, we will work together to decide the best approach for the future of our brands, consistent with our strategy.”

Myers notes that one of the dominant factors motivating Rentokil’s interest in Steritech was the “quality of its people, including its senior leadership. Upon receiving HSR approval, we look forward to working with the senior team at Steritech to integrate the organization into Rentokil. All have expressed interest in working with us in the future.”

Steritech CEO Rich Ennis has agreed to take on the leadership role of the Transition Team, reporting to Myers, who tells PMP, “This is a testament to Rich’s skill as an executive leader, and a clear signal that we are interested in including the best ideas and the best people from both of our organizations in charting the course for our future.”

Rentokil has completed more than 30 acquisitions since its first one in 2006.

“We started with JC Ehrlich,” Myers recalls, “and since then we have completed major acquisitions — such as Presto-X, Western Exterminator Co., Eden, Eradico, Alpha Ecological, A Active, Atlantic, Watch All, Buffalo Exterminating and now the pending deal with Steritech — as well as many others.

“We are an ambitious company that is looking to grow continuously,” he tells PMP. “I can say that I am very happy with our results so far this year, and am confident that positive trajectory will continue through to the end of the year.”