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Acquisition Case Study: Bestway

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Acquisition case study: Bestway

Employing over 280 people, Bestway provides market leading service levels in pest control, washroom and office services throughout Chile and Colombia.

With a group mission “to offer high value added services and products that improve the quality of life and the environment”, it was clear from the beginning that Bestway was capable of being our market entry vehicle into Chile.

Why did Rentokil Initial pursue the acquisition of Best way?

The business was an ideal fit with our South America expansion strategy to:

  • Enter South American countries with large geographies, big size of population & urbanisation degree, and with interesting GDP Growth.
  • Enter in the large urban markets by acquiring a market leader with a capable management team to handle organic growth and further bolt-on acquisitions.

A professionally run company that would easily within a larger corporation, Bestway gave us the opportunity to take leading positions in the pest and hygiene markets of Chile and Colombia. On top of this we seized the opportunity to acquire a capable management team to build upon.

How was the deal reached?

The transaction was executed in a very quick and professional manner. The Bestway Executive Director presented to the RI management team on 20th December 2013, the letter of intent was agreed and signed the 11th January 2014 and deal completed the 28th February 2014.

The structure of the deal was very simple. Rentokil acquired 100% of the share capital of the business, with 75% of the consideration paid at completion and the remaining to be paid via an earnout mechanism over two years following the deal, dependent upon portfolio retention.

Why did Bestway choose Rentokil Initial?

“Rentokil Initial approached me and the other equity partners regarding the acquisition. After our initial conversation I realized that it would be a good deal for the employees and the shareholders.”

“The Rentokil M&A team were very professional in all aspects of the deal; acting with integrity throughout the transaction whilst being flexible and creative to find overcome issues throughout. I felt the seriousness of the intention to buy since the first meeting and they were clear the steps to try to close the deal.” Gerardo Guzman, Owner-Executive Director.

How has the business performed since acquisition?

The business grew nicely in 2014 and has continued this progression in early 2015. As expected, the business has the perfect size and management team to be an excellent platform for organic and further acquisitive growth.

Within the first year of the acquisition we acquired two small pest control businesses to build on Bestways presence — one in Santiago, Chile and another in Bogota, Colombia these are already integrated in our business.



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