Rentokil Initial Announces Sale of Initial Facilities

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28 February 2014 | Updated 01 January 1970

Rentokil Initial has announced this morning that it has agreed the sale of its Initial Facilities business to Interserve Plc for a total cash consideration of £250m.

Completion, which is subject to the agreement of Interserve's shareholders at a General Meeting on 17 March, is expected by the end of March 2014.

A presentation for investors and analysts was held on Friday 28 February 2014 via a live audio web cast at www.rentokil-initial.com and at www.interserve.com

Non-core

In 2013 Rentokil Initial indicated that Initial Facilities was a non-core business for the company. Its disposal, following that of City Link last year, will enable Rentokil Initial to focus on its three core business categories of Pest Control, Hygiene and Workwear. Excluding Initial Facilities, the Company's total revenue for the year ended 31 December 2013 was £1.76bn.

Initial Facilities delivered adjusted operating profit of £25.8m on revenues of £534.0m for the year ended 31 December 2013. The business has gross assets of £229.6m.

 Andy Ransom, Chief Executive of Rentokil Initial Plc, said: "This transaction really is a 'win win win'. It is an excellent outcome for our colleagues and customers in Initial Facilities, it represents a great opportunity for Interserve and it is absolutely the right deal for Rentokil Initial and its shareholders.

"Proceeds from the sale will be used primarily to pay down debt. We will also look to make further acquisitions in these core businesses."

Article written by Brian Shillibeer | Published 28 February 2014

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