Rentokil inks deal with PCI to form joint venture

UK-based Rentokil Initial plc today announced signing of an agreement with Pest Control India (PCI) to form a new joint venture by merging its Indian business and acquiring 57 per cent stake in the new company.
The combined entity will be the largest provider of pest control services and products in India, with combined annual revenue of Rs 450 crore and headcount of 7,000, Rentokil said.
The firm is listed on the London Stock Exchange and operates in over 65 countries.
"We have entered into an agreement to form a joint venture with PCI and to acquire a 57 per cent stake in the new joint venture," Rentokil Initial plc Chief Executive Andy Ransom said.

As part of the agreement, the company will merge its Indian business Rentokil India -- which has a strong presence in south India and operates in 40 cities -- into the joint venture.
Ransom said the deal will be closed next month but declined to share the size of the transaction.

He, however, said the existing brands will continue but the new products will be launched under a new brand.
Ernst and Young India has been the financial advisor to the transaction.
"PCI is an outstanding business and by combining its national scale in India with our global expertise, we will create a market leader that is strongly positioned to take advantage of the increasing demand for commercial and residential pest control services over the coming years," Ransom further said.

Both companies operate similar business models with a strong commitment to colleagues and delivering outstanding customer service, he added.
Anil Rao, PCI Chief Executive & Chairman of the JV, said, "It is perfectly suited and timed to capitalise on the surging demand for high quality, world-class pest management services.
"...This would certainly provide a great opportunity to accelerate growth and performance in India and across the region."
"PCI is the only company in this service industry with
in-house manufacturing capabilities and the unique ability to create sustainable products, better suited to a business driven increasingly by a global search for ecologically sensible solutions. This would certainly provide a great opportunity to accelerate growth and performance in India and across the region," he added.

Mr. Sam Easaw, Managing Director of Rentokil Initial in India, said, "The joint venture will combine our global expertise in areas such as innovation, digital technologies and international standards, with the national scale and heritage of PCI. Together, we will increase the standard of pest control and hygiene in India leading to enhanced standards for food and medicine safety, and more hygienic places to live and work. This is a great day for our colleagues and customers."
Mr. Joshua Rao, Director, PCI, said, "This is an exciting new phase for PCI's journey. The JV will catapult the business by combining global best practices, digital technologies and vast experience, with the objective to provide improved and efficient pest management solutions for our customers.