Pest Control M&A Weekly Commentary – Aug 26, 2019 – SvM Enters UK? Acquisition Spend Doubles in 2019, Potomac Completes 12th Transaction of the Summer

As you’ve noticed, the Weekly Commentary (my night job) has once again been forced to take a back seat to M&A (my day job). 

Over the course of the summer we’ve completed a dozen transactions and over the next few weeks we’ll be announcing approximately $300 million in global pest control transactions. We’ll start with a brief announcement today at the end of the Commentary.

Today’s Commentary will be very short and I will focus on what’s going on in the market today.

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Orkin Acquires Greenleaf Pest Organic Management

The Potomac Company is pleased to announce the sale of its client, Greenleaf Organic Pest Management, Inc. (“Greenleaf”), to Orkin Pest Control (“Orkin”).

Greenleaf, based in North Hollywood, California, was founded by Stan and Lori Lake in 1998. While predominantly a traditional pest control company, Greenleaf does provide organic services to some of its Los Angeles clients that desire organic treatment options.

Lori Lake said:

“I am very happy to be able to close this chapter of our lives and move on to the next. We began to search for an advisor because we had no idea what we should sell our business for, after all, this was for our retirement and it was a very important decision.

I was impressed with Paul Giannamore beginning with our initial phone conversation. Paul is very knowledgeable, patient and kind. He was always professional, yet very personable. He explained the process in minute detail, answered all of our questions and was easily available to us, even though we knew he was constantly on all corners of the globe. Not only was he able to run a very effective process with buyers, he also helped us in choosing the one that would be best not only for us, but our employees as well. Before hiring an advisor, we were concerned about spending money and not getting a satisfactory result. With Potomac, we truly couldn’t be more pleased with the results.”

Potomac acted as exclusive financial advisor to Greenleaf. The terms of the transaction were not disclosed.

Rollins Enters into Purchase Agreement to Acquire Clark Pest Control

Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial service company, announced today that it has agreed to acquire Clark Pest Control of Stockton, Inc. located in Lodi, CA. Clark Pest Control is a leading pest management company in California and the nation’s 8th largest pest management company according to PCT 100 rankings. Geotech Supply is included in the acquisition and will continue to expand its current operations, maintaining a commitment to quality service delivery. Rollins expects to close in the first quarter 2019 subject to regulatory approvals. [Read more…]

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…]

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!” 
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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 – 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…]

Rollins to Acquire Northwest Exterminating Co for $120 Million in Cash

 

Rollins, Inc. has entered into a definitive purchase agreement with Northwest Exterminating Co., Inc. to acquire its pest control business. This will be a cash purchase, and the transaction is expected to close in early August, subject to the satisfaction of customary conditions and regulatory approval. This is Rollins’ largest acquisition since it acquired HomeTeam Pest Defense in 2008. [Read more…]

Rollins Acquires Scientific Pest Management

Rollins Acquires Scientific Pest Managment AustraliaOrkin Acquires Austrial Scientific Pest Management

Rollins, Inc., the parent company of Orkin, has acquired Scientific Pest Management, which provides pest control service throughout Australia through owned, franchise and partner companies. This acquisition gives Rollins brands nationwide Australian coverage.

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