TMX - Terminix jumps 27% on acquisition by Rentokil for $6.7B
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.
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Terminix jumps 27% on acquisition by Rentokil for $6.7B