Pest Control M&A Weekly Commentary – September 17, 2018 – M&A Season Has Begun and It’s Gonna Be a Hot One

Pest Control Meetings at Dusk in Singapore

In my last Weekly Commentary I said that I would be trying hard to write on a weekly basis… and then I disappeared for five weeks (my lame excuses to follow). I guess even I dramatically underestimated how busy it was going to be this M&A season.

Labor day (early September) officially marks the start of pest control M&A season in North America and it’s begun as the busiest one I’ve seen in my 15 years in the industry. Transaction multiples have continued to edge higher. Every time I think we hit a top…. well, we don’t.

Right out of the gate, three PCT Top 100 companies are already under LOI and this morning we closed a transaction with ServiceMaster that would have been in the 80’s on the PCT Top 100 had the company reported. That transaction will be announced next week and with it comes with some interesting learning opportunities for all of us, which I’ll discuss next week.

On Monday, we advised on the sale of Guaranty Pest Elimination to Modern Pest Services, which is Anticimex’s largest acquisition in New England since the acquisition of Modern. The target operates in four states and will help Modern accelerate growth in New England, more on that below.  [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…]

Orkin Acquires Your Pest Control Company of Fort Worth, Texas

The Potomac Company is pleased to announce the acquisition of its client, Your Pest Control Company, by Orkin. Founded in Fort Worth, Texas, in 1997, by David and Dorene Norris, Your Pest Control Company is one of the fastest-growing commercial pest control companies in the DFW metro area.

David and Dorene commented: “Clearly, as business owners, valuation is important, but equally so is our people and our customers. We chose to sell our business to Orkin because they made us feel very comfortable that our business would continue to run standalone and provide the same quality of service to our customers as we always had. They’ve lived up to their commitments to our team, our customers and us, and we are confident that we made the right decision.” [Read more…]

Pest Control M&A Weekly Commentary – July 30, 2018 – Where to Stash Your Cash When You Sell

 

In this week’s commentary, we’ll be exploring:

  • Driving Value: The Importance of Route Density
  • Potomac Announces the Sale of Banks Pest Control to Rollins, Inc.
  • Where to Stash Your Cash When You Sell (or Even if you Don’t Sell)
  • Meetings in Singapore & Malaysia
  • Western Governments are Totally and Completely Broke … and They Want Your Money
  • A Highly Recommended Deal Attorney

Driving Value: The Importance of Route Density

Two of the most powerful levers you have to drive profitability in your business, and therefore value, is pricing and route density. We’ll save pricing for another day.

Where I see more than half of pest control companies not really thinking through things is on the density side. Sure, it feels good to cover an entire region. “I service from NYC to Baltimore, I’m YUUUGGGEEE!” 
[Read more…]

Orkin Acquires Banks Pest Control

Potomac is pleased to announce the sale of its client, Banks Pest Control, of Bakersfield, CA, to Rollins, Inc., the parent company of Orkin.

Banks Pest Control was founded by Orland Banks in 1969. What began as a one-man shop grew to a company of over 40 employees and one of the largest privately held pest control companies in the southern region of the San Joaquin Valley.

The terms of the transaction were not disclosed.

Pest Control M&A Weekly Commentary – July 16, 2018 – Outlook for the 2nd Half of 2018

In this week’s commentary, we’ll be discussing:

  • What’s in Store for the 2nd Half the of Year
  • Rentokil North America Acquires Innovative Pest Management
  • Pest Control in the Emerging Markets
  • A Little More on Knocking Doors

(Grand Kempinski Hotel, Cairo, Egypt)

So I’ve been a little slow in publishing the weekly commentary lately… it’s been very busy out there. As you’re about to see over the course of the next six months, the PCT Top 100 is about to be rearranged … again.

This week’s commentary is going to be a little short and we’ll get back to normal next week.

Although I am going to touch on my recent trip to the emerging markets of the Middle East and North Africa — namely, Egypt, Saudi Arabia and Turkey — first I want to get into my thoughts on the second half of the year… [Read more…]

Rentokil Steritech Acquires Innovative Pest Management of North Carolina

The Potomac Company is pleased to announce the acquisition of its client, Innovative Pest Management, by Rentokil Steritech.

Innovative was founded by Ronnie and Rhonda Caldwell in 1999 and has grown to be one of the largest privately held pest control businesses in the Lake Norman area, north of Charlotte, NC. [Read more…]

Rollins / Orkin Enters Singapore with Acquisition of Aardwolf Pestkare

As Elaine once famously quipped on Seinfeld’s The Contest:  “… and then there were three.” Similarly, there are now three major players in the Singapore pest control industry and transaction multiples are on the rise.

Rentokil has been in Singapore for years (the dominant player), Anticimex took the plunge in late 2015 / early 2016, and now the new kid on the block is Rollins, the parent company of Orkin.

On July 2nd, Rollins acquired the stock of the third largest pest control business in Singapore, Aardwolf Pestkare. [Read more…]

Pest Control M&A Weekly Commentary – June 4, 2018 – A Visit to Anticimex’s Stockholm

In this week’s commentary, we’ll be discussing:

  • Skadedjursbekämpning is Swedish for Pest Control: A Visit to Anticimex in Stockholm
  • Potomac Announces the Sale of Stout Pest to HomeTeam, Our Ninth Transaction of the Year

Skadedjursbekämpning is Swedish for Pest Control: A Visit to Anticimex in Stockholm

If Fosters is Australian for beer (yes, I know our Australian friends are having a fit).

And Fahrvergnügen is “the joy of driving…”

Then Skadedjursbekämpning is Swedish for pest control. Actually, that’s exactly what that mouthful means, it’s “pest control” in Swedish, and I got an earful of it last week. [Read more…]

HomeTeam Acquires Stout Pest Control

HomeTeam Pest Defense, a division of Rollins (NYSE: ROL), has acquired Stout Pest Control of San Antonio, TX.

Founded in 1989 by Russell Stout, the Company focuses on providing pest and termite control services to the residential market in San Antonio metro. Russell and his wife Linda will be retiring and all of the Stout employees will be joining HomeTeam’s San Antonio operations. [Read more…]