30 sep 25   rentokil initial plc - completion of france workwear business sale rentokil initial plc | rto | 379 12.3 3.4% | mkt cap: 9,576m    rns number : 4190b rentokil initial plc 30 september 2025   30 september   rentokil initial completes sale of france workwear business to h.i.g. capital   rentokil initial plc (the "company") is pleased to confirm the completion of the sale of its workwear business in france to h.i.g. capital, as first announced in may 2025. the sale values the business at an enterprise value of €410m (c.$480m), on a cash-free and debt-free basis, including an earn-out of up to €30m (c.$35m) based on the performance of the business in 2026.   total net cash proceeds from the transaction are expected to total €370m (c.$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 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 c.100 basis points. following completion, the group's revenue mix will comprise c.85% pest control and c.15% hygiene & wellbeing.   looking ahead, the sale enables the company to concentrate resource on the large, attractive long-term growth opportunities within its core markets.    andy ransom, chief executive of rentokil initial plc said:   "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."   enquiries: investors / analysts: heather wood, rentokil initial, +44 7808 098793 media: malcolm padley, rentokil initial plc, +44 7788 978199   note: france workwear was classified within "discontinued operations" in hy25 financials and will be similarly referred to at fy25. in fy24, france workwear, including flat linen textile and clean room business, generated revenue of $324m, adjusted operating profit of $57m and had associated capital expenditure of $93m.   this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   mscsddsuseisesu return to news summary

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