Rentokil to sell SOLitude and Vertex to Bain Capital for $230m

(Sharecast News) - Rentokil Initial said on Tuesday that it has agreed to sell SOLitude Lake Management and its Vertex Aquatic Solutions division to Bain Capital for $230m. Total estimated net cash proceeds after tax are expected to be around $180m.

Rentokil noted that in FY 2025, SOLitude - which has become the leading lake and pond management company in the US - generated revenue of $112m and adjusted operating profit of $16m.

The company said the deal further reduces leverage within its target range, supporting Rentokil's capital allocation priorities to invest in organic growth and bolt-on M&A, pay a progressive dividend and then return surplus capital to shareholders.

Chief executive Mike Duffy said: "This transaction supports our strategy of building a platform for sustainable profitable growth through greater simplification of the organisation and specifically prioritising our highest opportunity markets and categories.

"The disposal further strengthens our balance sheet as we look to accelerate growth and improve margins and free cash flow and deliver on the clear opportunity for shareholder value creation."

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