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.