ROLLINS, INC. COMPLETES ACQUISTION OF SAELA HOLDINGS, LLC, A LEADING PEST MANAGEMENT COMPANY
Rhea-AI Summary
Rollins Inc. (NYSE:ROL) has announced the acquisition of Saela Holdings, , the 23rd largest pest management company with over $65 million in annual revenue. Founded in 2008, Saela employs more than 250 teammates and operates across nine states, serving both residential and commercial customers.
The transaction was financed through cash on hand and commercial paper, with pro forma leverage ratio not expected to exceed 1.0x. Saela will operate as a standalone brand, complementing Rollins' current portfolio with expanded presence in the Pacific Northwest, Mountain West, and Midwestern United States.
Saela, recognized on the Inc. 5000 list of fastest-growing private companies, utilizes diverse customer acquisition methods including inside sales teams, technician sales efforts, and door-to-door marketing services. The Potomac Company served as exclusive financial advisor for the transaction.
Positive
- Acquisition adds $65M in annual revenue to Rollins' portfolio
- Low leverage ratio (under 1.0x) indicates conservative financing approach
- Geographic expansion into strategic US regions
- Acquisition of a fast-growing company (Inc. 5000 listed)
- Diversified customer acquisition channels
Negative
- Integration costs and risks not disclosed
- Transaction value not disclosed
Insights
Rollins' acquisition of Saela Holdings represents a strategic growth move with strong financial fundamentals. Adding
The financing structure demonstrates exceptional financial discipline - using cash on hand and commercial paper while maintaining a pro forma leverage ratio below 1.0x indicates Rollins is executing its growth strategy without compromising balance sheet strength. This conservative approach to acquisition financing is particularly noteworthy in today's higher interest rate environment.
Saela's inclusion on the Inc. 5000 list of fastest-growing private companies suggests it brings a growth-oriented operational model that could accelerate Rollins' overall trajectory. The 250+ employee base adds meaningful scale to Rollins' operations.
The decision to maintain Saela as a standalone brand reflects a thoughtful integration approach that preserves established market presence and customer relationships while still allowing for operational synergies. Saela's diversified customer acquisition strategy across traditional sales channels and door-to-door marketing likely complements Rollins' existing approaches.
This acquisition exemplifies disciplined M&A execution that addresses multiple strategic objectives simultaneously. By acquiring Saela, Rollins gains immediate entry into new geographic territories with minimal overlap to existing operations - maximizing market expansion while minimizing cannibalization risks.
The transaction structure demonstrates financial prudence. While specific terms remain undisclosed, maintaining leverage below 1.0x post-acquisition indicates Rollins isn't overextending itself financially. The use of cash on hand supplemented by commercial paper represents an optimal capital allocation approach in the current environment.
Particularly valuable is Saela's multi-channel customer acquisition strategy spanning inside sales, technician-led efforts, and door-to-door marketing - capabilities that could potentially be deployed across other Rollins brands. The explicit cultural alignment mentioned by both CEOs significantly increases integration success probability, as cultural misalignment typically drives 70-90% of M&A failures.
The standalone brand approach indicates a sophisticated integration strategy that preserves Saela's market equity while still allowing for back-office synergies. With Saela's proven growth trajectory (evidenced by Inc. 5000 recognition) and complementary geographic presence across nine states, this acquisition solidifies Rollins' competitive position in the fragmented pest management industry.
- Highly complementary end market exposure that provides strategic growth opportunities
- Transaction financed through cash on hand and commercial paper
- Pro forma leverage ratio not expected to exceed 1.0x
Founded in 2008, Saela provides services for both residential and commercial customers across nine states. The Company has a diversified approach to customer acquisition, deploying traditional inside sales teams, technician sales efforts, as well as door-to-door marketing services. Saela has been recognized on the Inc. 5000 list as one of the fastest growing private companies in America.
"The acquisition of Saela will accelerate our long-term growth strategy and expand our presence in key geographies, including the Pacific Northwest, Mountain West, and Midwestern United States. While Saela will operate as a standalone brand, its service areas are highly complementary to our current portfolio. Saela has established itself as a high-quality, customer focused business anchored by a strong culture," said Jerry Gahlhoff, President and CEO of Rollins.
"We're thrilled to partner with Rollins, a world-class organization, to create long-lasting opportunity for our team members. Rollins and Saela are closely aligned in the way we value people, leadership, and customer service, which is why there was no question that Rollins is the right partner for us as we begin the next chapter for Saela," said Andrew Richardson, Chairman and CEO of Saela.
The Potomac Company acted as exclusive financial advisor to Saela on the transaction.
About Rollins, Inc.
Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in
Cautionary Statement Regarding Forward-Looking Statements
This press release as well as other written or oral statements by the Company may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements in this press release include, but are not limited to, statements regarding: the belief that Saela's highly complementary end market exposure provides strategic growth opportunities; the expectations that the pro forma leverage ratio will not exceed 1.0x; the expectations that the acquisition of Saela will (i) accelerate Rollins' long-term growth strategy and expand its presence in key geographies and (ii) create long-lasting opportunity for team members; and the belief that Saela will operate as a standalone brand.
These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and may also be described from time to time in our future reports filed with the SEC. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law.
Investor Contact:
Lyndsey Burton
InvestorRelations@rollins.com
(404) 888-2000
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SOURCE Rollins, Inc.
FAQ
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