Q2 Commercial Pest Revenue Estimates Likely to be Cut by ~25% by Wall Street; ServiceMaster’s Black Wednesday – Pest Control Daily Market Update

Given the movement in the markets and the constant requests that we are receiving, Potomac will be providing a brief daily update for the time being on the pest control public and private market news.

1. Wall Street to Cut Commercial Pest Control Estimates Significantly

After speaking with several prominent wall street analysts, we expect to see some serious cuts in commercial revenue estimates for firms like Rollins and ServiceMaster. I wouldn’t be surprised if we see Q2 2020 commercial revenue estimates down by a full 25%, maybe more.

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Commentary – March 13, 2020 — The PCT Top 100 Has Lost $2.5 Billion in Enterprise Value in 2020…Thus Far

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On September 12, 2019, I published the following in our exclusive publication for Potomac clients, Notes from the Front Line

“Last week I returned home from Stockholm after the closing of the $200 million sale of Nomor AB to ServiceMaster in what is likely the most expensive pest control deal in history. The head of M&A for ServiceMaster wrote to me: ‘Paul, you absolutely run circles around every other advisor in this industry and you should be proud of what you were able to do for your client. Over the last decade, you’ve been the architect of the highest priced deals for every acquirer out there. Which is why we hate you’ 

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Pest Control M&A Weekly Commentary – Jan 28, 2020 — The Beginning of the End? Pest Control Transaction Multiples Contract for the First Time in a Decade as ServiceMaster Hits the Skids

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This story begins on the morning of October 22, 2019. My flight had just taken off and I nestled into my seat to try to get some work done. An email from Jamie Clement at Buckingham Research catches my eye; the subject line is: SERV: TIMBER!!!!!!!!!!! 

There is nothing in the body of the email. Damnit Jamie, what’s going on? 

Oh no… ServiceMaster pre-released, this isn’t good.

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Pest Control M&A Weekly Commentary – Sept 9, 2019 – ServiceMaster Enters Europe: Now the 4th Largest Pest Control Company in Europe w/ Nomor Acquisition

Left to Right: Paul Giannamore (Potomac), Tony DiLucente (CFO of ServiceMaster), and Svein Olav Stölen (CEO of Nomor).

Stockholm, Sweden
6 September 2019

Today I am writing this Commentary on the plane from Stockholm, Sweden to Geneva, Switzerland. As it was a very busy week last week, this week’s Commentary will once again be a short one… but an important one.

This afternoon we closed on the sale of our client, Nomor Holdings AB (“Nomor” or the “Company”), to ServiceMaster Global Holdings (NYSE: SERV) in what I believe is ServiceMaster’s largest and most important transaction since its IPO in June of 2014. It’s clearly the largest pest control transaction in Europe in recent history and one that will change the competitive dynamics on the continent for years to come.

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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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Pest Control M&A Weekly Commentary – May 31, 2019 – A Rush for the Exits, Anticimex Acquires JP McHale, ServiceMaster Acquires Inspect-All

Potomac Opens an Office in Latin America

“You’re going to hurt sellers by calling the top of the market. Now everyone is going to rush for the exits and there will be a glut of sellers, pushing down prices. You need to think before you say things and how it will impact the market” said one unhappy pest control business owner to me in an email in response to this Commentary.

I am flattered that a reader thinks my words move the multi-billion dollar global pest control market, especially in light of the fact that I can’t even convince my wife where we should go out to dinner (let alone the other things I try to convince her to do). 

If I owned a pest control company and was thinking about selling it, I don’t think that I would be worried about a “glut of sellers.” 

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Anticimex Acquires JP McHale Pest Management

The Potomac Company is pleased to announce the acquisition of its client, JP McHale Pest Management, Inc. by Anticimex.

Anticimex continued expansion in the U.S. with the acquisition of JP McHale Pest Management, operating in the greater New York area. With the acquisition, Anticimex further strengthens its market position on the East Coast as well as the strategic New York area. JP McHale ranked 34 on last year’s PCT Top 100 list and is currently generating $25 million per annum in revenue.

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ServiceMaster Acquires Inspect-All Services, a PCT Top 100 & Inc. 5000 Company

ServiceMaster (NYSE: SERV), a Fortune 1000 company, through its subsidiary, Terminix International Company LP, has acquired the Atlanta-area pest control division of Inspect-All Services, headquartered in Conyers, Georgia, from siblings Brian and Brandon Lunsford.

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Pest Control M&A Weekly Commentary – April 7, 2019 – Rentokil Acquires Mosquito Control Services, I Tried to Buy Rentokil North America, Q&A, Inside Paris

7 April 2019, Gulf of Suez, Egypt

It’s been a busy start to 2019. Multiples peaked in late 2018 and have remained relatively constant, drawing a continuous supply of sellers to the bargaining table.

As we rapidly approach the start of the pest control season in North America, I’ve received quite a few questions over the last few weeks as to whether or not I think that this market will continue to run. Given the fact that the ECB and the Federal Reserve have reversed course on monetary policy (i.e., they’ve finally admitted to the public that it’s impossible for them to tighten), my guess is that this buoyant M&A market will continue throughout 2019 unless we get a repeat of 2008. One thing I will say, it’s clear to me, through first-hand experience in dozens of emerging markets that global growth is beginning to slow.

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Rentokil Steritech Acquires Mosquito Control Services


The addition of Mosquito Control Services, one of the largest vector control companies in the US, bolsters Rentokil Steritech’s leading global position in vector disease control 

The Potomac Company today announced the acquisition of its client, private equity-owned Mosquito Control Services (“MCS”), based in Metairie, LA, by Rentokil Steritech. The transaction closed in late 2018.

Mosquito Control Services is one of the largest vector control companies in the United States, operating out of ten offices in five Southeastern US states. By merging MCS’s operations with its current vector control platform – Vector Disease Control International (VDCI) – Rentokil Steritech is now the leading global service provider in the fight against Zika virus, Dengue fever, West Nile virus and other vector-borne diseases.

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