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Rentokil says 2025 profit to be hurt by delayed benefits from Terminix deal
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Rentokil says 2025 profit to be hurt by delayed benefits from Terminix deal
Oct 17, 2024 2:11 PM

Oct 17 (Reuters) - British pest control company Rentokil

Initial ( RTO ) 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 month, 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.

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