OKIL has agreed to buy US-based pest control business Steritech Group for $425m (£277m).
The FTSE 250-listed firm said the deal will strengthen its position as the number three pest control business in the US, and will make it the third largest pest control company in Canada.
Andy Ransom, Rentokil chief executive, said the firm had found a “rare opportunity to acquire a high-quality business with national scale in this key target growth market”.
“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,” he added. “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.”
Steritech boss Rich Ennis said: “Rentokil’s strong culture and focus on people make them the perfect fit for Steritech’s people and customers. I believe that the future is bright for the new organisation.”
Shares in Rentokil were up by x.xx per cent yesterday.