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UPDATE 1-Rentokil says 2025 profit to be hurt by delayed benefits from Terminix deal
Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) -1.75%
Rollins, Inc. +0.94%
Dow Jones Industrial Average -0.51%
S&P 500 index -1.07%
NASDAQ -1.69%
Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) RTO | 28.68 | -1.75% |
Rollins, Inc. ROL | 60.05 | +0.94% |
Dow Jones Industrial Average DJI | 48458.05 | -0.51% |
S&P 500 index SPX | 6827.41 | -1.07% |
NASDAQ IXIC | 23195.17 | -1.69% |
Adds details on North America business, Terminix deal
Oct 17 (Reuters) - British pest control company Rentokil Initial RTO.L said on Thursday its profit and margins in 2025 will be hurt due to a two- to three-month delay in realizing the benefits of its acquisition of U.S. rival Terminix.
Rentokil bought Terminix for $6.7 billion in 2021 but has struggled to integrate the two companies. It most recently warned of a modest disruption to organic growth in July and August.
The company said it will review the optimal branch network as well as new technician and sales pay plans, which would delay the benefits it expects from the acquisition.
The deal complications have been compounded by Rentokil's weak sales in North America. Last week, the company issued its third warning about the region in the past year.
Rentokil said its North America business has "underperformed", hurt by higher-than-expected material and consumable costs, partly due to inflation.
(Reporting by Yamini Kalia and Shanima A in Bengaluru; Editing by Subhranshu Sahu and Savio D'Souza)
((Yamini.Kalia@thomsonreuters.com;))
