Acquisition

Rentokil Initial PLC 17 July 2007 17 July, 2007 Rentokil Initial acquires Lancaster Office Cleaning Company Rentokil Initial plc (LSE: RTO) today announces that it has completed the acquisition of the entire issued share capital of Lancaster Office Cleaning Company Ltd ('Lancaster') for a total consideration of £19.0m. Lancaster is a leading provider of high quality cleaning and support services to the Greater London area, with a particular focus on the City, where it counts numerous blue chip companies among its client base. The company has an experienced management team and has grown revenue strongly. Turnover for the year ended 31 July 2006 was £45 million, up 14.5% year on year. Lancaster, which employed an average of 3,600 people during 2006, is an excellent operational fit with the existing cleaning services provided by Initial Facilities Services. The acquisition strengthens Initial's position in the City, while providing opportunities for cross selling of other services such as washrooms, pest control and office plants, particularly into clients within the financial services sector. In 2006, Initial Facilities Services saw revenues increase by 10.6% to £519 million, of which 63% was related to cleaning services. Peter Lloyd, Divisional Managing Director of Initial Facilities Services said: 'The strength of the Lancaster brand, its strong presence in the London metropolitan area, its blue chip customer base and the company's proven and experienced management team all combine to make this an excellent acquisition. Lancaster is an ideal fit with our existing business.' Ends Lancaster Office Cleaning Company Ltd The company was established in 1976 by the Lancaster brothers. It is the most prominent provider of cleaning and support services to blue chip clients within the City and Canary Wharf. Post acquisition, Lancaster will continue to operate under its own brand name and under the direction of Ray Lancaster and the current senior management team. Rentokil Initial Rentokil Initial is one of the largest business services companies in the world, operating in all the major economies of Europe, North America, Asia Pacific and Africa. The company provides a range of support services in over 40 countries where the 'Rentokil' and 'Initial' brands represent innovation, deep expertise and consistent quality of service. Services include textiles and washroom services, pest control, office plants and artwork, express parcel delivery, IT hygiene and facilities services. For further information, please contact Rentokil Initial plc Malcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199 Brunswick Group Teresa Bianchi - 020 7404 5959 / 07834502477 This information is provided by RNS The company news service from the London Stock Exchange
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