Memphis, Tenn.-based ServiceMaster, whose pest control presence includes Terminix and Terminix Commercial, has closed an acquisition deal for McCloud Services, South Elgin, Ill. Terms were not disclosed; LR Tullius represented and acted as exclusive financial advisor to McCloud on the transaction.
“We are excited about teaming up with Chris, Stephanie and the McCloud Services team,” says Greg Rutherford, president of Terminix Commercial, referring to third-generation CEO Chris McCloud and President Stephanie Dickson. “This partnership, based on innovative pest management in the food industry, will strengthen our position in the Midwest, and our ability to provide exceptional commercial pest management experiences.”
With reported revenue of $25 million, McCloud Services serves the food supply chain of custody, health care, hospitality, property management, retail industries and residential markets. It operates in Illinois, Indiana, Kentucky, Kansas, Iowa, Missouri, Mississippi, Tennessee, Wisconsin and Ohio. The Copesan co-founding partner and current stockholder has a next-generation, data-driven platform for integrated pest management in the food supply chain, and this was key to the purchase, Rutherford says: “We also intend to leverage the McCloud team to help us apply their innovative food industry practices across our global pest management system, leading the way to accelerate better and safer food practices and providing protection to millions of families.”
McCloud will continue to operate under its current brand. Chris McCloud and Stephanie Dickson will continue to lead the business in their current roles, alongside the company’s existing management team.
“Our employees care very much about the customers we serve,” says Chris McCloud. “It is why ServiceMaster and Terminix Commercial were interested in us, and why we saw them as the best partners for our future. The advantages of being part of a leading global business are more opportunities for our employees as well as our customers.”
McCloud Services was founded in 1904 as W.B. McCloud & Co. as a manufacturer and distributor of sheep and cattle dips for use in the stockyards, before expanding into selling insecticides and rodenticides. Later that year, William Bailey McCloud expanded further, under the name “Rat Engineers and Pest Control Service.” The company has been known as McCloud Services since the early 1940s.
In June, McCloud Services hosted its 20th annual “Pest Invasion” conference, with more than more than 150 professionals involved in the food supply chain of custody, including food, pest management and environmental health, in attendance.
The deal is one of several ServiceMaster has completed in recent months, including Inspect-All Services, headquartered in Conyers, Ga., and Seitz Brothers Exterminating, based in Tamaqua, Pa.
In September, ServiceMaster entered the European pest control market with the acquisition of Nomor Holding AB — a Stockholm, Sweden-based pest control company with operations in Sweden and Norway. Nomor is reportedly the fourth-largest pest control company in Europe. Learn more about the Normor acquisition.