Rentokil Initial plc has completed the sale of its Workwear business in France to H.I.G.
Capital in a transaction that values the business at €410m ($480m) on a cash-free and debt-free basis, including an earn-out of up to €30m ($35m) based on its performance in 2026.
Total net cash proceeds from the sale which was first announced in May 2025 are expected to total €370m ($435m), subject to final earn-out outcome.
Proceeds will be allocated in-line with the balanced Rentokil Initial model, distributed towards deleveraging of the balance sheet, organic growth focused investment in the core business, and complementary bolt-on M&A activity.
The completion of the Workwear sale is of strategic significance for us, as we execute on our ongoing strategy to focus on our market leading, core businesses.
The transaction is a continuation in the positioning of Rentokil Initial as a streamlined Pest Control and Hygiene & Wellbeing business, reducing annual capital expenditure requirements and benefitting cash conversion margin by some 100 basis points.
Following completion, the Group's revenue mix will comprise approximately 85 per cent Pest Control and 15 per cent Hygiene & Wellbeing.
Andy Ransom, Chief Executive of Rentokil Initial plc, says: "The completion of the Workwear sale is of strategic significance for us, as we execute on our ongoing strategy to focus on our market leading, core businesses.
"The transaction is value accretive for our shareholders, as we strengthen our balance sheet, streamline capital efficiency, and improve cash generation, with a simplified business.
"I would like to thank our France Workwear colleagues for their commitment throughout the process, and wish all at the company well as it moves forward with H.I.G."
