Rentokil Initial sells US water quality arm to Bain for USD230 million
(Alliance News) - Rentokil Initial PLC on Tuesday said it has struck a deal with Bain Capital LP to sell US lake and pond management arm Solitude Lake Management LLC for USD230 million.
Net cash proceeds from the disposal, which includes Solitude's Vertex Aquatic Solutions division, will be around USD180 million after tax.
The cash will be used to pay down debt. "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," Rentokil said.
The sale to the Boston, Massachusetts-based private equity firm is expected to be completed in the fourth quarter of the year.
"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," Rentokil Chief Executive Officer Mike Duffy explained.
"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."
Solitude generated USD16 million in adjusted operating profit on USD112 million in revenue in 2025.
"Lake and pond management is becoming increasingly complex as rising water temperatures, nutrient run-off and invasive species place growing pressure on freshwater ecosystems," said Jacob Donnelly, a partner at Bain Capital.
"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."
Rentokil shares were up 0.3% to 318.60 pence early Tuesday in London.
By Tom Waite, Alliance News editor
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