Pest Control M&A Weekly Commentary – November 5, 2018 – I’m Calling a Top, American Pest / Anticimex Acquires Triple S Services, Valuation Multiples Peak

7 November 2018
Stockholm, Sweden

Well, this is going to be a long one. 

I intended to write a short post-Pestworld piece, but I just had so much great material from Pestworld and the subsequent two weeks of meetings that this post has really taken on a life of its own.

I had meetings in Stockholm this week and now I am on the flight back to Switzerland — which is going to act as my tomato timer on writing this article. So, I apologize in advance if this one gets a little messy.

I am going to make a risky move and officially call a top in the pest control M&A market for this cycle. In doing so, I am going to attempt to provide you more fact than opinion and you can come up with your own conclusions. If I’m wrong, at some point, this will provide some great fodder for the glorified real estate agents out there.

But as usual, before we get to the juicy stuff, we’ve got some transactions to announce.  [Read more…]

Anticimex / American Pest Acquires Triple S Pest Services

Potomac is pleased to announce the sale of its client, Triple S Services —a family-owned pest control firm with locations serving D.C., Maryland, and Virginia — to American Pest, an Anticimex portfolio company.

Triple S Pest Services, a PCT Top 100 company for many years, was founded in 1981 and has a solid reputation among its clients for offering reliable, low-risk pest control services for local, state and government institutions, private businesses, and residential homes. [Read more…]

Pest Control M&A Weekly Commentary – October 1, 2018 – All Eyes on Rollins: The ROL Complex and Asset Prices in the Pest Control Industry

Consultants and business advisors love to use witless cliches and platitudes. Not only that, when they utter this crapola, they say it as if it’s deep insight or profound, original thought.

I know this because I, like you, am forced to attend stupid seminars and conferences in order to rack up professional continuing education credits.

PestWorld is coming up in less than a month. If you want to hear some nonsense, just show up and listen in on some of the mind-numbing BS seeping through the hallowed halls of PestWorld business educational sessions. You’re guaranteed to hear some pencil neck, standing in front of a circa 1991 powerpoint presentation, spouting such drivel as, “If you don’t measure it, you can’t manage it.” 

Or better yet, you’ll hear something like, “Run your business every day like you have to sell it tomorrow”… or is it, “run your business like you’ll never sell it?” Who knows. I guess it depends on who’s talking. Of course, after delivering that line of cheese, the speaker will pause for a second, scan the crowd with that little smirk on his face. In his mind, he’s serving up a platter of profound business wisdom akin to delivering a modern-day version of the Sermon on the Mount. [Read more…]

Rentokil North America Acquires Hudson Valley’s Liberty Pest Control

The Potomac Company today announced the sale of its client, Liberty Pest Control, to Rentokil North America.

Founded in 1959 and operating from Albany, NY to Scranton, PA, Liberty is one of the oldest and largest pest control operations in New York’s Hudson Valley.

Potomac is pleased to have had the opportunity to advise the management and shareholders of Liberty in a competitive, strategic sale process.

[Read more…]

Modern Pest Services, An Anticimex Company, Acquires Guaranty Pest Elimination

The Potomac Company has announced that its client, Guaranty Pest Elimination of Danielson, CT, has been acquired by Modern Pest Services, an Anticimex Company. This is Anticimex’s largest acquisition in New England since the acquisition of its platform, Modern Pest Services.

Guaranty Pest Elimination has been providing both residential and commercial services in Connecticut, Massachusetts, Rhode Island, and New York since 1989. Known as a customer-centric pest control solutions provider, Guaranty brings a strong brand and industry-leading client service to the Modern family. The Company was founded by Andy Kacavich in the 1980s. [Read more…]

Anticimex Acquires Killingsworth Environmental

The Potomac Company is pleased to announce the acquisition of its client, Killingsworth Environmental (“Killingsworth”) in North Carolina, by Anticimex. Headquartered in Charlotte, N.C., Killingsworth operates in South and North Carolina and has a strategic position in one of U.S. fastest-growing geographies. With the acquisition of Killingsworth, Anticimex further strengthens its market position on the U.S. east coast as well as creates a platform for further long-term growth in the Carolinas. Killingswoth has 180 employees and is a $21 million firm. [Read more…]

Rentokil Acquires Leading Vector Disease Control Company

The Potomac Company is pleased to announced the acquisition of its client, Vector Disease Control, LLC (“VDA”), North America’s largest provider of mosquito control services, by Rentokil North America. This acquisition is Rentokil’s largest US acquisition since it acquired Steritech in late 2015.

Headquartered in Little Rock, Arksansas, VDA operates from 52 offices in 32 states and the Caribbean and generates over $47 million per year in revenue. [Read more…]

Anticimex Acquires Modern Pest Services

The Potomac Company is pleased to announce the acquisition of its client, Modern Pest Services, by Anticimex.

Modern Pest Services, a family owned pest control company founded in 1945 is based in Brunswick, Maine. Modern Pest is the independent market leader in the New England market and provides high quality pest control and wildelife services to residential and commercial customers in Maine, New Hampshire, Vermont, Rhode Island and Massachusetts.

[Read more…]

Anticimex Acquires Viking Pest Control

Anticimex Group today announces its continued expansion in the US with the acquisition of New Jersey based Viking Pest Control, number 28 on industry magazine PCT’s list of the top 100 pest control companies in the US.

Viking was founded in 1980 by Ed and Eileen Bradbury. Their tireless commitment to grow their family business lead Viking to become the leading provider of residential and commercial pest control in New Jersey and other states in the region. Ryan and Dan Bradbury, both members of the founding family, will remain with the company as President and Vice President respectively. Ed will remain on as a consultant. Viking will continue to operate under its current brand as part of the Anticimex Group.

The acquisition is part of Anticimex’s strategy to expand in the Northeast and Mid-Atlantic regions of the United States. Including the acquisition of Viking, Anticimex has made a total of five acquisitions in New York, New Jersey, Pennsylvania, Delaware, Maryland and Virginia in the last twelve months and continues to look for further growth opportunities in the region with the help of Ryan, Ed and Dan.

Commenting on today’s announcement, Jarl Dahlfors CEO and President of Anticimex Group:

“I am very happy to announce the acquisition of Viking today and to welcome Ed, Ryan, Dan and all the Viking employees into the Anticimex family. We identified Viking early on as a premier, high-quality company with a stellar reputation in the industry and outstanding track record of growth. Viking has developed a strong, dynamic and visionary leadership team. I look forward to working together with Ryan and the team to realize the full potential of Viking and seeing it prosper as part of Anticimex. The acquisition of Viking represents a major step in our ambition to build a strong operation in the Northeast and Mid-Atlantic regions of the US.”

Ryan Bradbury, President of Viking Pest Control, commented on the transaction:

“The sale of our family business is a decision that affects every branch in your family tree, including our employees that really are an integral part of our family, and we did not take it lightly.  The opportunity that Anticimex provided us was truly unique and came at the right time.  We know Viking will still feel like home for everyone here because Anticimex clearly recognizes the exceptional value of our company and our employees. We look forward to working hand in hand with the Anticimex team to grow Viking going forward, and we feel very confident that the future will be promising and beneficial for both our loyal customers and employees.”

Rentokil Acquires Heron Home & Outdoor

Rentokil North America has broadened its footprint in the Southeastern US through the acquisition of Heron Home & Outdoor based in Apopka, Florida.

Heron, founded in 2002, is largely a lawn care business (over 2/3 of total revenue is lawn, tree and shrub). The firm has continued to experience rapid growth (20%+ per year) since inception. In 2010, Heron generated $6,651,184 in total revenue growing to over $20 million at the time of the closing.

While you may find it a curious acquisition for Rentokil given that it’s largely a lawn care business, Rentokil didn’t have much of a footprint in Florida and if you’re going to be in the state of Florida, the conventional wisdom is that you have to do lawn as well.

The terms of the transaction were not disclosed.