Terminix Global Holdings, Inc. (NYSE: TMX) has announced that it has reached a deal to sell its pest management businesses in the United Kingdom and Norway. Terminix is selling these assets as a condition of concluding its imminent merger with Rentokil Initial plc. The Divestment, as well as the originally scheduled conclusion of the antitrust review process in the United States, will fulfil two of the closing conditions to the Company’s proposed merger with Rentokil.
The Company’s and Rentokil’s shareholders must both approve the deal, as well as the registration of Rentokil’s American depository shares with the SEC and their listing on the NYSE. Both parties are making strong work on the remaining conditions, and the deal is still on track to close in the second half of 2022, with a target closing date of the end of the third quarter.
Furthermore, subject to certain closing circumstances, the Divestment is scheduled to close in the next 30 to 60 days. In the quarter ending June 30, 2022, Terminix anticipates losing money on the sale of these assets. For the full year 2022, the two firms were estimated to earn around $60 million in sales and less than $10 million in Adjusted EBITDA.
“While at Terminix, I want to thank the Norwegian and UK employees for their devotion and commitment to our Company and customers,” stated Terminix CEO Brett Ponton. “Under experienced new leadership, both businesses are well positioned in lucrative pest control industries for continued development and margin expansion.” Terminix is pleased to take another step ahead in the prospective Rentokil merger, as we continue on track for execution in the second half and a third-quarter closing.”