After many weeks of speculation, it has been confirmed that Santia Services, the former Connaught Compliance health and safety business, has been bought by Rentokil in a deal worth up to £8.6m.
The former Connaught Compliance division was sold by administrator KPMG to a private equity firm when the parent company collapsed and the company was renamed Santia Services in December 2010.
The pest control business, which was based on Igrox, was always a viable unit and was a leading player in the industry. However, the parent company was badly affected by the cutbacks in local government spending on housing maintenance and had issued a number of profit warnings.
On 14th February, Rentokil confirmed in a Stock Exchange announcement that it has now bought Santia Services for a cash consideration of £5.6m with up to an additional £3m depending on performance. The acquisition is effective immediately and is expected to generate annualised revenues of £24m.
Santia’s Services Division consists of 3 business units – Fumigation & Pest Control; Water Treatment & Hygiene; Fire Safety & Prevention.
Pest control will be merged with Rentokil’s UK Pest business. Water will be merged with Rentokil’s existing UK Water Hygiene business within the Initial Facilities Services (IFS) division. Fire will form a separate business unit within the IFS division.
The deal will see 430 staff join Rentokil.