UK's Rentokil forms JV with PCI
UK-based Rentokil Initial plc on Tuesday announced signing of an agreement with Pest Control India (PCI) to form a new joint venture by merging its Indian business and acquiring 57 per cent stake in the new company. The combined entity will be the largest provider of pest control services and products in India, with combined annual revenue of Rs 450 crore and headcount of 7,000, Rentokil said.
The firm is listed on the London Stock Exchange and operates in over 65 countries. "We have entered into an agreement to form a joint venture with PCI and to acquire a 57 per cent stake in the new joint venture," Rentokil Initial plc Chief Executive Andy Ransom said.
As part of the agreement, the company will merge its Indian business Rentokil India -- which has a strong presence in south India and operates in 40 cities -- into the joint venture. Ransom said the deal will be closed next month but declined to share the size of the transaction.
He, however, said the existing brands will continue but the new products will be launched under a new brand. Ernst and Young India has been the financial advisor to the transaction.
"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," Ransom further said.
Both companies operate similar business models with a strong commitment to colleagues and delivering outstanding customer service, he added. Anil Rao, PCI Chief Executive & Chairman of the JV, said, "It is perfectly suited and timed to capitalise on the surging demand for high quality, world-class pest management services.
"...this would certainly provide a great opportunity to accelerate growth and performance in India and across the region." The Mumbai-headquartered PCI operates in locations across the country, including 47 cities with significant presence in North and Eastern India.
"PCI is the only company in this service industry with in-house manufacturing capabilities and the unique ability to create sustainable products, better suited to a business driven increasingly by a global search for ecologically sensible solutions," he added.