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Rentokil Initial completes Franz Haniel joint venture agreement
10th of August 2017
Rentokil Initial in the UK has completed it joint venture agreement with Germany-based Franz Haniel, which operates under the CWS-Boco brand. Rentokil agreed in December to merge its workwear and hygiene businesses in 10 countries, mainly in the Benelux and central & eastern Europe regions.
The London-listed pest control firm will receive around €520.0 million in cash from the deal, an 18 per cent stake in the venture and an annual fixed dividend of €19.0 million for five years following completion. The first payment will be made to Rentokil in the first half of 2018.
"The deal aligns with our value-creating capital allocation model perfectly, as not only does it increase our ability to invest in our core growth categories of pest control and hygiene, but it also protects value through an investment in a leading European workwear and hygiene business," said Rentokil chief executive Andy Ransom.
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