CAMBERLEY, UK: Rentokil Initial plc has entered into an agreement to form a joint venture (JV) with Pest Control Pvt Ltd (PCI) and to acquire a 57 percent stake in the new JV.
As part of the transaction, the company will merge its Indian business into the joint venture. The combined business will be the largest provider of pest control services and products in India.
Rentokil is one of the largest business services companies in the world, headquartered in Camberley, UK. The company offers route-based services including pest control, hygiene and workwear through teams of local experts.
PCI, a privately-owned company, provides a national presence in the Indian market – operating in 47 cities. It is headquartered in Mumbai, India. Rentokil has a strong presence in Southern India where there will be significant density benefits by combining the businesses.
Rentokil will have management control of the JV, which will have combined annual revenues of 4.5 billion rupees, operate from 250 locations and employ 6,900 people. In the 12 months to 31 March 2016, PCI delivered revenues of 3.7 billion rupees.
This agreement is in line with the company’s strategy of accelerating growth in its pest control business and pursuing M&A opportunities in growth and emerging markets.
As part of the transaction, which is expected to complete in March, the existing PCI business’ manufacturing facilities are being retained by the sellers and the Company has entered into an exclusive agreement to market their key pest control products in India and export them to other emerging markets. The agreement also provides the opportunity to jointly develop new innovative products.
“PCI is an outstanding business and by combining its national scale in India with our global expertise, we will create a market leader that is strongly positioned to take advantage of the increasing demand for commercial and residential pest control services over the coming years. Both companies operate similar business models with a strong commitment to colleagues and delivering great customer service,” said Andy Ransom, chief executive of Rentokil Initial.
“The growth potential in India is enormous. Economic activity, urbanisation, population growth and increasing urban middle classes are some of the key drivers of growth for pest control services, and we see these trends very clearly in India,” he added.
“The JV is the most strategic combination of the acknowledged managerial and technical skills represented by Rentokil Initial and PCI’s premier position, broad-spectrum customer base and vast experience operating on the Indian subcontinent. It is perfectly suited and timed to capitalise on the surging demand for high-quality, world-class pest management services,” said Anil Rao, chief executive of PCI.
© Worldofchemicals news
Read More: Rentokil inks deal with PCI to form joint venture
No comments:
Post a Comment