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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SOLitude Lake Management Acquires Aquatic Environments

SOLitude Lake Management, a leading environmental firm specializing in lake, pond, wetland and fisheries management, and related environmental services, has expanded its national presence to the western United States by uniting with Aquatic Environments, Inc. based in the San Francisco Bay Area.

Aquatic Environments is California’s largest full-service lake and water feature maintenance contractor active in the fields of aquatic and terrestrial vegetation control, lake and fountain construction, hydraulic and mechanical dredging, mosquito management and flood mitigation. Established in 1998, Aquatic Environments is known for client-focused services and embracing its role as an environmental steward. The company serves a wide variety of customers ranging from State and Federal government entities to homeowners associations and wineries in California and Nevada. Virtually all Fortune 500 companies located in the Bay Area, including major technology, refining, and defense contractors rely on Aquatic Environments to protect their critical infrastructure and beautify their aquatic resources.

SOLitude and Aquatic Environments find common ground in their ability to serve clients with a variety of premier aquatic management solutions. The strategic alignment of the two companies forges an unprecedented level of industry expertise, increased tools, equipment and technologies, broadened training and development efforts, and new informational offerings for stakeholders in California, Nevada and the western United States.

Roughly 50 technicians, biologists, engineers and qualified permitting specialists are based in Aquatic Environments’ Benicia, California, headquarters. The team boasts extensive working knowledge of a complex regulatory environment to create sustainable aquatic management solutions that promote healthy and vibrant ecosystems. The acquisition will provide a foundation for SOLitude to expand in the west and to provide clients across the region with the high level of customer service and performance they have come to know.

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…]