Rentokil Initial to Sell its Workwear Business

Rentokil Initial Plc, Crawley, England, announced that it has entered into an agreement for the intended sale of its workwear business in France with H.I.G. Capital. France Workwear comprises Rentokil Initial’s workwear, flat linen and cleanroom business in France.

As is common in France, a binding put option has been signed by H.I.G. Capital, committing it to complete the proposed transaction once mandatory information and consultation procedures with the French employee representative bodies and customary regulatory approvals have been satisfied.

The proposed transaction values France Workwear at a gross enterprise value of approximately €410m ($465m) on a cash-free, debt-free basis including an earn-out mechanism with a maximum value of €30m ($34m) linked to the performance of the business in 2026. Total net cash proceeds are expected to be approximately €370m ($420m), subject to customary closing adjustments and the final earn-out outcome. The transaction is expected to finalize in the fourth quarter of 2025.

The proposed transaction positions Rentokil Initial more clearly as a streamlined Pest and Hygiene & Wellbeing business, enabling the company to effectively concentrate resources to better capitalize on these core areas. The sale of France Workwear results in a business with revenue comprising roughly 80% Pest and 20% Hygiene & Wellbeing.

“This transaction is a further important step in the execution of our strategy to focus the company on Pest Control and Hygiene & Wellbeing, where we are a market leader,” said Andy Ransom, CEO of Rentokil Initial Plc. “Over recent years we have been reshaping our portfolio towards higher growth markets and lower capital expenditure operations. In 2015, Pest Control accounted for just 44% of Group Revenue, today it’s above 80%. This simplifies our business, strengthens our balance sheet, and enhances cash generation.

“This is a win-win deal which will provide additional focus and support for France Workwear as a standalone business, while Rentokil Initial continues to focus on the range of growth opportunities in Pest Control and Hygiene & Wellbeing over the short, medium and longer term.”

Goldman Sachs International is acting as the sole financial adviser and joint corporate broker to Rentokil Initial Plc. For more information, click here.