Pest Control M&A Weekly Commentary – December 10, 2018 – Parasitec in Paris, Rentokil Acquires Vermont Pest Control, ServiceMaster Acquires Assured Environments

Potomac at Parasitec Pest Control Conference in Paris // Copyright The Potomac Company, LLC

10 December 2018
Paris, France ==> New York City

This week’s Commentary is going to be very short. I am back in the US and this is the busiest Q4 on record in the industry, so I don’t have much time to write. However, I received over 400 emails on my last two Commentaries with some great questions that I’ll be answering publicly next week (no, not all 400 of them).

I’m writing this on my way out of Paris, where I attended Parasitec, the Pestworld of Europe. For those of you who haven’t been, it’s similar to Pestworld except: (a) the attendees dress nicer, (b) they drink less, (c) there are no 58-year-old chemical reps making out with 30-year-old manufacturer’s reps at the Dolphin bar, and (d) the exhibition hall actually keeps normal hours. Other than that, it’s about the same.  [Read more…]

Rentokil Steritech Acquires Vermont Pest Control

Vermont Pest Control’s HQ in Middletown Spring, VT

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

Founded in 1991 by Art and Chere Tournet, Vermont Pest Control has grown to be one of the largest pest control operations in the state of Vermont. Vermont Pest Control operates in the territory between Albany, NY and Burlington, VT and is an important strategic acquisition for Rentokil. All of Vermont Pest Control team members will be joining Rentokil, while the sellers will remain with Rentokil until throughout the integration period.

Art and Chere commented on the acquisition: “We’ve known John Myers for a long time and we’re happy to partner with him and his team here in Vermont. They’ve been great to work with and we’re confident that we made the right decision for our team and our customers.”

On working with Potomac, Art said: “Paul is an absolutely top notch guy and he knows what he is talking about. Paul will give you the time and attention that you require. Whether you are a small operation or a very large company, my sense is that he was working exclusively for us even though I knew he was flying around the world working on dozens of transactions.”

Paul Giannamore, Managing Director of Potomac, commented: “Artie and Chere were very fun to work with and I will really miss their sense of humor. I think that this acquisition is going to be home run for Rentokil and will really help them grow their service footprint in Vermont, especially with Art and Chere remaining involved. I wish them the very best.”

Vermont Pest Control is both Rentokil’s and Potomac’s second acquisition in Vermont in recent years, after Rentokil purchased LR Pest Elimination.

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…]

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…]

Pest Control Mergers & Acquisitions (M&A) – Weekly Commentary – May 21, 2018

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

  • Market Overview // Rentokil Acquires PCT Top 100 Advanced Pest Management
  • The Long Read: Should You Knock Doors? The Economics of Door-to-Door Sales
  • What Do You Really Need in Terms of M&A Tax Advice?

[Read more…]

Rentokil Acquires Advanced Pest Management, a PCT Top 100 Company

Potomac is pleased to announce the acquisition of its PCT Top 100 client, Elkton, Maryland-based Advanced Pest Management (APM) — $6.9 million in revenue — by Rentokil Steritech. The acquisition further expands Rentokil Steritech’s density in the Northeastern U.S. market. Terms of the deal were not disclosed.

Established in 1964 by the Kreer family, APM  was sold to Jeremy and Nam Kreer, President and Regional Account Executive of APM respectively, in 2003. The business has built a long-standing reputation as a provider of outstanding customer service to homeowners and businesses from southern New Jersey through Delaware to Baltimore, Maryland. [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…]

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.