Sale of SOLitude Lake Management, LLC
Summary by AI BETAClose X
Announcement of Sale of SOLitude Lake Management, LLC to Bain Capital
Rentokil Initial plc (the "Company") (FTSE / NYSE: "RTO") today announces a further step in the simplification of the Group, having entered into an agreement with Bain Capital for the sale of SOLitude Lake Management, LLC, ("SOLitude") and its Vertex Aquatic Solutions division.
Leveraging more than 50 years of combined experience, SOLitude has become the leading lake and pond management company in the United States. Its customised and sustainable services, including ongoing lake and pond management, shoreline restoration, and water quality control, address a variety of ecological challenges.
The total consideration for the proposed transaction is $230m on a cash-free, debt-free basis. Total estimated net cash proceeds after tax are expected to be around $180m.
The transaction further reduces leverage within our target range, supporting our capital allocation priorities to invest in organic growth and bolt-on M&A, pay a progressive dividend and then return surplus capital to shareholders.
Mike Duffy, Chief Executive of Rentokil Initial plc, 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."
Jacob Donnelly, Partner, Bain Capital, said:
"Lake and pond management is becoming increasingly complex as rising water temperatures, nutrient run-off and invasive species place growing pressure on freshwater ecosystems. SOLitude has built the technical depth to address these challenges at scale, combining certified aquatic biologists with a national field organisation serving communities, municipalities and property owners across the country. We look forward to supporting the SOLitude team as an independent company and investing in the people, technology and geographic reach required to serve more bodies of water in the years ahead."
The agreement is subject to Hart-Scott-Rodino clearance and is expected to complete by early Q4 2026.
Goldman Sachs International is acting as sole financial advisor and joint corporate broker to Rentokil Initial plc.
Note: In FY 2025, SOLitude generated Revenue of $112m and Adjusted Operating Profit of $16m.
Enquiries:
For further information, please contact:
Investors / Analysts:
Heather Wood, Rentokil Initial plc, +44 7808 098793
Jamie Lewis, Rentokil Initial plc, +44 7341 071944
Media:
Malcolm Padley, Rentokil Initial plc, +44 7788 978 199
About Rentokil Initial plc
Rentokil Initial plc is a global leader in Pest Control and Hygiene & Wellbeing services. It employs c.63,400 people in 90 countries.
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