Rentokil Initial (LSE: RTO), the pest control and hygiene services group, said early today it has agreed to sell SOLitude Lake Management LLC, including its Vertex Aquatic Solutions division, to Bain Capital for $230m on a cash-free, debt-free basis. Net cash proceeds after tax are expected to be around $180m.
Rentokil shares were trading at 318.7p by mid-morning, up 0.3% from Monday’s close of 317.8p, having ranged between 318p and 322.6p in early trade.
SOLitude, described as the leading US lake and pond management company, generated revenue of $112m and adjusted operating profit of $16m in FY2025. The deal needs Hart-Scott-Rodino antitrust clearance in the US and should complete by early in the fourth quarter. Goldman Sachs advised Rentokil.
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Rentokil said the proceeds will further cut leverage, debt relative to earnings, within its target range, freeing capital for organic growth, bolt-on deals, its progressive dividend and, potentially, further shareholder returns.
Chief executive Mike Duffy said the move fits Rentokil’s broader strategy.
This transaction supports our strategy of building a platform for sustainable profitable growth through greater simplification of the organisation and specifically prioritising our highest opportunity markets and categories. The disposal further strengthens our balance sheet as we look to accelerate growth and improve margins and free cash flow and deliver on the clear opportunity for shareholder value creation.
Mike Duffy, Chief Executive, Rentokil Initial plc
