- UK's Rentokil to buy Terminix (TMX +23.3%) for $6.7B in a stock-and-cash transaction values has an implied price of $55 per share, a premium of 47% over December 13 closing price.
- Rentokil gets about 60% of its revenue from pest control and most of the 228 businesses it has acquired since 2016 are from the same field.
- The transaction will boots Rentokil's scale and earnings and cut costs.
- Rentokil to pay 20% in stock and will issue about 643M new shares, including American depositary ones.
- Terminix (TMX +23.3%) to continue owning about 26% of the company.