Disposal
Rentokil Initial PLC
30 March 2007
30 March 2007
INITIAL ELECTRONIC SECURITY GROUP: OFFER FROM UTC
Rentokil Initial plc (LSE: RTO) announces an offer from United Technologies
Corporation (NYSE: UTX) for its electronic security division. UTC's offer
values Initial Electronic Security Group ('IESG') at £595 million. The offer
consideration is payable in cash at closing.
Closing of the transaction is conditional upon a limited number of items
including regulatory approvals and consultations with employee works councils in
France and the Netherlands. These will be sought and take place over the next
several weeks with a view to completing a transaction before the end of June.
Proceeds will be used to reduce debt.
Doug Flynn, Chief Executive of Rentokil Initial, said today:
'This offer for our electronic security businesses represents good value for
Rentokil Initial shareholders.
'Over the past 18 months we have been actively reshaping Rentokil Initial's
business portfolio, investing particularly in businesses where we have or can
achieve market leading positions. We have therefore made successful
acquisitions in pest control and parcel delivery and in our Asia Pacific
businesses and sold businesses in conferences and manned guarding. Completing
this transaction will be a significant step towards focusing our resources on
those businesses where we are best positioned to create additional value for
shareholders.'
Bill Brown, president of UTC Fire & Security, a unit of United Technologies
Corp., said today:
'IESG is an excellent strategic fit with our electronic security business. The
addition of IESG will strengthen our presence in Europe, particularly in the
U.K., Netherlands and France, while adding branch locations in the U.S. The
combined businesses position us well for further growth and expansion, and
brings additional value to our customers, shareholders and employees. We are
looking forward to welcoming IESG employees to UTC Fire & Security.'
Rentokil Initial is being advised by Greenhill & Co. International LLP.
Enquiries:
Rentokil Initial plc +44 (0) 20 7866 3000
Malcolm Padley - Corporate Communications
Lisa Williams - Investor Relations
Further information:
This announcement follows a previously announced strategic review of Rentokil
Initial's electronic security activities. It confirms that while Initial
Electronic Security Group has performed well under Rentokil Initial ownership,
it is of greater strategic value to other participants in the industry who may
be better positioned to support its long term growth.
Initial Electronic Security Group
The businesses within Initial Electronic Security Group (IESG) - principally
comprising Initial Fire & Security, Varel, Delta and Initial Electronics - are
leading providers of electronic security services to commercial and public
sector customers in the UK, France, the Netherlands and the USA. The businesses
mainly provide installation, maintenance and monitoring services for electronic
security systems including intruder alarms, fire alarms, CCTV and access
control. IESG also provides integrated security system solutions on more
complex security projects for corporate organisations, private individuals and
government facilities globally. In the year to 31 December 2006, IESG had £40.4
million of adjusted operating profit (before amortisation of intangible assets
and one-off items) on £282.1 million of revenue, with gross assets at 31
December of £185.1 million. IESG is headquartered in Blackburn, UK and managed
by Clive Hayton.
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 have come to represent innovation,
deep expertise and consistent quality of service. Services include textiles and
washroom services, pest control, tropical plants, parcel delivery and facilities
services.
UTC Fire & Security
UTC Fire & Security, headquartered in Farmington, Conn., USA, provides fire
safety and security solutions to more than one million customers worldwide. It
is a unit of United Technologies Corp., based in Hartford, Conn., a diversified
company that provides high technology products and services to the aerospace and
commercial building industries worldwide.
This information is provided by RNS
The company news service from the London Stock Exchange
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