Street Calls of the Week
LONDON - Rentokil Initial plc (LSE:RTO) has completed the sale of its France Workwear business to H.I.G. Capital for an enterprise value of €410 million ($480 million), the company announced Tuesday.
The transaction, first announced in May 2025, includes an earn-out of up to €30 million ($35 million) based on the business’s performance in 2026. Total net cash proceeds are expected to reach €370 million ($435 million), subject to final earn-out results.
Rentokil Initial plans to allocate the proceeds toward balance sheet deleveraging, organic growth investments in its core business, and complementary bolt-on acquisitions, according to the company’s statement.
The divestment aligns with Rentokil Initial’s strategy to position itself as a streamlined Pest Control and Hygiene & Wellbeing business. Following the completion, the group’s revenue mix will comprise approximately 85% from Pest Control and 15% from Hygiene & Wellbeing operations.
The company expects the transaction to reduce annual capital expenditure requirements and improve cash conversion margin by approximately 100 basis points.
"The completion of the Workwear sale is of strategic significance for us, as we execute on our ongoing strategy to focus on our market leading, core businesses," said Andy Ransom, Chief Executive of Rentokil Initial plc, in a press release statement.
The sale marks another step in Rentokil Initial’s efforts to concentrate resources on growth opportunities within its core markets.
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