[6-K] RENTOKIL INITIAL PLC /FI Current Report (Foreign Issuer)
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Rentokil Initial has completed the sale of its France Workwear business to H.I.G. Capital for an enterprise value of €410m (c.$480m) on a cash-free, debt-free basis, including an earn-out of up to €30m (c.$35m) tied to 2026 performance. Total net cash proceeds are expected to be around €370m (c.$435m), subject to the final earn-out outcome. Proceeds will be deployed according to Rentokil's balanced model: reducing debt, funding organic investment in the core business, and pursuing complementary bolt-on M&A.
The company says the disposal further streamlines Rentokil into a Pest Control and Hygiene & Wellbeing group, lowering annual capital expenditure needs and improving cash conversion margin by about 100 basis points. After completion, revenue mix is expected to be roughly 85% Pest Control and 15% Hygiene & Wellbeing. France Workwear was reported as a discontinued operation in HY25 and in FY24 generated $324m of revenue, $57m of adjusted operating profit and had $93m of capital expenditure.
Rentokil Initial ha completato la vendita della sua attività France Workwear a H.I.G. Capital per un valore d'impresa di 410 milioni di euro (circa 480 milioni di dollari) su base cash-free, debt-free, includendo un earn-out fino a 30 milioni di euro (circa 35 milioni di dollari) legato alle performance del 2026. Le proventi netti in contanti totali dovrebbero aggirarsi intorno a 370 milioni di euro (circa 435 milioni di dollari), soggetti all’esito finale dell’earn-out. I proventi saranno impiegati secondo il modello bilanciato di Rentokil: riduzione del debito, finanziamento degli investimenti organici nel core business e realizzazione di acquisizioni supplementari bolt-on. L’azienda aggiunge che la cessione ulteriormente snellisce Rentokil rendendola un gruppo di Pest Control e Hygiene & Wellbeing, riducendo i fabbisogni di capitale annuali e migliorando la conversione della cassa di circa 100 punti base. Al completamento, la composizione del fatturato sarà grosso modo 85% Pest Control e 15% Hygiene & Wellbeing. France Workwear era stato segnalato come operazione cessata nell’HY25 e nel FY24 aveva registrato ricavi per 324 milioni di dollari, un utile operativo rettificato di 57 milioni di dollari e una spesa in conto capitale di 93 milioni di dollari.
Rentokil Initial ha completado la venta de su negocio France Workwear a H.I.G. Capital por un valor de empresa de 410 millones de euros (aprox. 480 millones de dólares) en una base sin efectivo ni deuda, incluyendo un earn-out de hasta 30 millones de euros (aprox. 35 millones de dólares) atado al desempeño de 2026. Se esperan ingresos netos en efectivo totales de alrededor de 370 millones de euros (aprox. 435 millones de dólares), sujeto al resultado final del earn-out. Los ingresos se destinarán según el modelo equilibrado de Rentokil: reducción de la deuda, financiación de inversiones orgánicas en el negocio principal y búsqueda de adquisiciones complementarias bolt-on. La compañía afirma que la desinversión simplifica aún más a Rentokil en un grupo de Pest Control y Hygiene & Wellbeing, reduciendo las necesidades de gasto de capital anuales y mejorando el margen de conversión de caja en unos 100 puntos base. Tras la finalización, se espera que la composición de los ingresos sea aproximadamente 85% Pest Control y 15% Hygiene & Wellbeing. France Workwear se informó como operación discontinuada en HY25 y, en FY24, generó ingresos de 324 millones de dólares, 57 millones de dólares de beneficio operativo ajustado y 93 millones de dólares de gasto de capital.
Rentokil Initial은 프랑스 워크웨어 사업을 H.I.G. Capital에 매각했고 기업 가치 4억1000만 유로(약 4억8000만 달러)이며 현금 없는, 부채 없는 기준으로, 2026년 성과에 연계된 최대 3000만 유로의 이익잉여금(약 3500만 달러)을 포함합니다. 순현금 수익은 최종 이익잉여금 결과에 따라 약 3억7000만 유로(약 4억3500만 달러)로 예상됩니다. 수익은 Rentokil의 균형 잡힌 모델에 따라 사용될 예정입니다: 부채 감소, 핵심 사업에 대한 유기적 투자 자금 조달, 보완적 Bolt-on M&A 추진. 이 거래로 Rentokil은 해충 방제 및 위생 & 웰빙 그룹으로 더 많이 정리되어 연간 자본지출 필요가 감소하고 현금 전환 마진이 약 100bp 개선될 것이라고 회사는 밝힙니다. 완료 후 매출 구성은 대략 85% 해충 방제, 15% 위생 & 웰빙으로 예상됩니다. France Workwear는 HY25에서 중단 매각으로 보고되었으며 FY24에서 매출 324백만 달러, 조정 영업이익 5700만 달러, 자본지출 9300만 달러를 기록했습니다.
Rentokil Initial a finalisé la vente de son activité France Workwear à H.I.G. Capital pour une valeur d'entreprise de 410 millions d'euros (environ 480 millions de dollars), sur une base cash-free et debt-free, incluant un earn-out pouvant atteindre 30 millions d'euros (environ 35 millions de dollars) lié à la performance de 2026. Les flux de trésorerie nets totaux attendus s'élèveront à environ 370 millions d'euros (environ 435 millions de dollars), sous réserve du résultat final de l'earn-out. Les produits seront affectés selon le modèle équilibré de Rentokil : réduction de la dette, financement des investissements organiques dans le cœur du métier et poursuite d'acquisitions complémentaires bolt-on. L'entreprise indique que la cession permet d'aligner davantage Rentokil sur un groupe Pest Control et Hygiene & Wellbeing, en réduisant les besoins annuels d'investissement en capital et en améliorant la marge de conversion de trésorerie d'environ 100 points de base. Après l'achèvement, la répartition du chiffre d'affaires devrait être d'environ 85% Pest Control et 15% Hygiene & Wellbeing. France Workwear était présentée comme une opération disparue dans HY25 et, sur l'exercice FY24, a généré un chiffre d'affaires de 324 millions de dollars, un bénéfice opérationnel ajusté de 57 millions de dollars et 93 millions de dollars de dépenses d'investissement.
Rentokil Initial hat den Verkauf seines France Workwear-Geschäfts an H.I.G. Capital für einen Unternehmenswert von 410 Mio. Euro (ca. 480 Mio. USD) zu einer rein cash-free, debt-free Basis abgeschlossen, einschließlich eines Earn-outs von bis zu 30 Mio. Euro (ca. 35 Mio. USD), abhängig von der Leistung im Jahr 2026. Die voraussichtlichen Gesamtnettomittelzuflüsse belaufen sich auf etwa 370 Mio. Euro (ca. 435 Mio. USD), vorbehaltlich des endgültigen Earn-out-Ergebnisses. Die Mittel werden gemäß Rentokils ausgewogenem Modell verwendet: Schuldenabbau, Finanzierung organischer Investitionen im Kerngeschäft und die Verfolgung ergänzender bolt-on M&A. Das Unternehmen sagt, dass der Verkauf Rentokil weiter in eine Pest-Control- und Hygiene- & Wellbeing-Gruppe strafft, die jährlichen Kapitalausgaben senkt und die Cash-Conversion-Marge um ca. 100 Basispunkte verbessert. Nach Abschluss wird die Umsatzzusammensetzung voraussichtlich etwa 85% Pest Control und 15% Hygiene & Wellbeing betragen. France Workwear wurde in HY25 als stillgelegte Sparte gemeldet und erwirtschaftete im FY24 einen Umsatz von 324 Mio. USD, einen bereinigten operativen Gewinn von 57 Mio. USD und eine Kapitalausgabe von 93 Mio. USD.
أتمت Rentokil Initial بيع نشاط العمل في فرنسا من فرنسا للملابس المهنية إلى H.I.G. Capital بقيمة شركة تبلغ 410 ملايين يورو (حوالي 480 مليون دولار) على أساس خالٍ من النقد وخالٍ من الدين، مع وجود Earn-out يصل إلى 30 مليون يورو (حوالي 35 مليون دولار) مرتبط بأداء عام 2026. من المتوقع أن تكون صافي العوائد النقدية الإجمالية نحو 370 مليون يورو (حوالي 435 مليون دولار)، رهناً بالنتيجة النهائية لـ Earn-out. سيتم استخدام العوائد وفق نموذج Rentokil المتوازن: خفض الديون، تمويل الاستثمارات العضوية في الأعمال الأساسية، والسعي وراء صفقات bolt-on M&A التكميلية. تقول الشركة إن التصفية ستبسّط Rentokil أكثر إلى مجموعة مكافحة الآفات والنظافة والرفاهية والصحة، مما يقلل من احتياجات الإنفاق الرأسمالي السنوية ويحسن هامش تحويل النقد بنحو 100 نقطة أساسية. بعد الإتمام، من المتوقع أن تكون مكونات الإيرادات نحو 85% مكافحة الآفات و15% النظافة والرفاهية والصحة. تم الإبلاغ عن France Workwear كعملية متوقفة في HY25، وفي FY24 حققت إيرادات قدرها 324 مليون دولار، وبلغ الربح التشغيلي المعدل 57 مليون دولار، وكانت النفقات الرأسمالية 93 مليون دولار.
Rentokil Initial 已完成将其法国工作服业务出售给 H.I.G. Capital，企业价值为 4.1 亿欧元（约 4.8 亿美元），以现金与债务清零为基础，其中包含与 2026 年业绩挂钩的最高 3000 万欧元（约 3500 万美元）的业绩对价。预计净现金收入总额约为 3.7 亿欧元（约 4.35 亿美元），以最终业绩对价结果为准。对价将按照 Rentokil 的均衡模式使用：减少债务、资助核心业务的有机投资，以及推进补充性 bolt-on 并购。公司表示，此次处置将进一步精简 Rentokil 成为害虫控制与卫生与福祉集团，年度资本支出需求下降，现金转化率提升约 100 个基点。完成后，收入结构预计约为 85% 害虫控制与 15% 卫生与福祉。France Workwear 在 HY25 被列为处置运营，FY24 的收入为 3.24 亿美元，调整后经营利润为 5700 万美元，资本支出为 9300 万美元。
Positive
- Completed disposal of non-core asset for €410m enterprise value, unlocking ~€370m net cash proceeds
- Expected ~100 basis point improvement in cash conversion margin due to lower capex
- Clearer strategic focus with pro forma revenue mix of ~85% Pest Control and ~15% Hygiene & Wellbeing
- Proceeds allocated to deleveraging and growth consistent with the company's balanced model
Negative
- Final proceeds contingent on up to €30m earn-out tied to 2026 performance
- Filing lacks pro forma leverage and explicit uses of proceeds with numerical targets
- Transaction reduces diversification by exiting the Workwear segment, concentrating revenue risk
Insights
TL;DR: The divestment monetizes a non-core asset, strengthens the balance sheet, and sharpens strategic focus on higher-margin core services.
The sale at €410m enterprise value with expected net cash proceeds of ~€370m materially reduces capital intensity for Rentokil and provides immediate liquidity for deleveraging and targeted reinvestment. The stated ~100bp improvement in cash conversion margin and a shift to ~85% Pest Control revenue mix indicate clearer operational focus and potentially higher recurring cash flows. The €30m earn-out aligns seller and buyer on near-term performance, but final proceeds depend on 2026 results. For acquirers, H.I.G. gains a business with FY24 revenue of $324m and $57m adjusted operating profit, suggesting mid-single-digit operating margins before synergies or restructuring.
TL;DR: Transaction is balance-sheet positive and simplifies Rentokil's capital allocation, though proceeds are contingent on an earn-out.
The company will receive ~€370m net cash proceeds subject to earn-out, which management says will be used to reduce leverage and fund growth. Removing a business that had $93m of FY24 capex will materially lower capital expenditure needs and could improve free cash flow conversion. The classification of France Workwear as discontinued operations formalizes the exit for reporting clarity. Missing from the filing are pro forma leverage metrics and explicit targets for post-deal net debt or planned M&A sizing, which would help quantify the balance-sheet impact.
Rentokil Initial ha completato la vendita della sua attività France Workwear a H.I.G. Capital per un valore d'impresa di 410 milioni di euro (circa 480 milioni di dollari) su base cash-free, debt-free, includendo un earn-out fino a 30 milioni di euro (circa 35 milioni di dollari) legato alle performance del 2026. Le proventi netti in contanti totali dovrebbero aggirarsi intorno a 370 milioni di euro (circa 435 milioni di dollari), soggetti all’esito finale dell’earn-out. I proventi saranno impiegati secondo il modello bilanciato di Rentokil: riduzione del debito, finanziamento degli investimenti organici nel core business e realizzazione di acquisizioni supplementari bolt-on. L’azienda aggiunge che la cessione ulteriormente snellisce Rentokil rendendola un gruppo di Pest Control e Hygiene & Wellbeing, riducendo i fabbisogni di capitale annuali e migliorando la conversione della cassa di circa 100 punti base. Al completamento, la composizione del fatturato sarà grosso modo 85% Pest Control e 15% Hygiene & Wellbeing. France Workwear era stato segnalato come operazione cessata nell’HY25 e nel FY24 aveva registrato ricavi per 324 milioni di dollari, un utile operativo rettificato di 57 milioni di dollari e una spesa in conto capitale di 93 milioni di dollari.
Rentokil Initial ha completado la venta de su negocio France Workwear a H.I.G. Capital por un valor de empresa de 410 millones de euros (aprox. 480 millones de dólares) en una base sin efectivo ni deuda, incluyendo un earn-out de hasta 30 millones de euros (aprox. 35 millones de dólares) atado al desempeño de 2026. Se esperan ingresos netos en efectivo totales de alrededor de 370 millones de euros (aprox. 435 millones de dólares), sujeto al resultado final del earn-out. Los ingresos se destinarán según el modelo equilibrado de Rentokil: reducción de la deuda, financiación de inversiones orgánicas en el negocio principal y búsqueda de adquisiciones complementarias bolt-on. La compañía afirma que la desinversión simplifica aún más a Rentokil en un grupo de Pest Control y Hygiene & Wellbeing, reduciendo las necesidades de gasto de capital anuales y mejorando el margen de conversión de caja en unos 100 puntos base. Tras la finalización, se espera que la composición de los ingresos sea aproximadamente 85% Pest Control y 15% Hygiene & Wellbeing. France Workwear se informó como operación discontinuada en HY25 y, en FY24, generó ingresos de 324 millones de dólares, 57 millones de dólares de beneficio operativo ajustado y 93 millones de dólares de gasto de capital.
Rentokil Initial은 프랑스 워크웨어 사업을 H.I.G. Capital에 매각했고 기업 가치 4억1000만 유로(약 4억8000만 달러)이며 현금 없는, 부채 없는 기준으로, 2026년 성과에 연계된 최대 3000만 유로의 이익잉여금(약 3500만 달러)을 포함합니다. 순현금 수익은 최종 이익잉여금 결과에 따라 약 3억7000만 유로(약 4억3500만 달러)로 예상됩니다. 수익은 Rentokil의 균형 잡힌 모델에 따라 사용될 예정입니다: 부채 감소, 핵심 사업에 대한 유기적 투자 자금 조달, 보완적 Bolt-on M&A 추진. 이 거래로 Rentokil은 해충 방제 및 위생 & 웰빙 그룹으로 더 많이 정리되어 연간 자본지출 필요가 감소하고 현금 전환 마진이 약 100bp 개선될 것이라고 회사는 밝힙니다. 완료 후 매출 구성은 대략 85% 해충 방제, 15% 위생 & 웰빙으로 예상됩니다. France Workwear는 HY25에서 중단 매각으로 보고되었으며 FY24에서 매출 324백만 달러, 조정 영업이익 5700만 달러, 자본지출 9300만 달러를 기록했습니다.
Rentokil Initial a finalisé la vente de son activité France Workwear à H.I.G. Capital pour une valeur d'entreprise de 410 millions d'euros (environ 480 millions de dollars), sur une base cash-free et debt-free, incluant un earn-out pouvant atteindre 30 millions d'euros (environ 35 millions de dollars) lié à la performance de 2026. Les flux de trésorerie nets totaux attendus s'élèveront à environ 370 millions d'euros (environ 435 millions de dollars), sous réserve du résultat final de l'earn-out. Les produits seront affectés selon le modèle équilibré de Rentokil : réduction de la dette, financement des investissements organiques dans le cœur du métier et poursuite d'acquisitions complémentaires bolt-on. L'entreprise indique que la cession permet d'aligner davantage Rentokil sur un groupe Pest Control et Hygiene & Wellbeing, en réduisant les besoins annuels d'investissement en capital et en améliorant la marge de conversion de trésorerie d'environ 100 points de base. Après l'achèvement, la répartition du chiffre d'affaires devrait être d'environ 85% Pest Control et 15% Hygiene & Wellbeing. France Workwear était présentée comme une opération disparue dans HY25 et, sur l'exercice FY24, a généré un chiffre d'affaires de 324 millions de dollars, un bénéfice opérationnel ajusté de 57 millions de dollars et 93 millions de dollars de dépenses d'investissement.
Rentokil Initial hat den Verkauf seines France Workwear-Geschäfts an H.I.G. Capital für einen Unternehmenswert von 410 Mio. Euro (ca. 480 Mio. USD) zu einer rein cash-free, debt-free Basis abgeschlossen, einschließlich eines Earn-outs von bis zu 30 Mio. Euro (ca. 35 Mio. USD), abhängig von der Leistung im Jahr 2026. Die voraussichtlichen Gesamtnettomittelzuflüsse belaufen sich auf etwa 370 Mio. Euro (ca. 435 Mio. USD), vorbehaltlich des endgültigen Earn-out-Ergebnisses. Die Mittel werden gemäß Rentokils ausgewogenem Modell verwendet: Schuldenabbau, Finanzierung organischer Investitionen im Kerngeschäft und die Verfolgung ergänzender bolt-on M&A. Das Unternehmen sagt, dass der Verkauf Rentokil weiter in eine Pest-Control- und Hygiene- & Wellbeing-Gruppe strafft, die jährlichen Kapitalausgaben senkt und die Cash-Conversion-Marge um ca. 100 Basispunkte verbessert. Nach Abschluss wird die Umsatzzusammensetzung voraussichtlich etwa 85% Pest Control und 15% Hygiene & Wellbeing betragen. France Workwear wurde in HY25 als stillgelegte Sparte gemeldet und erwirtschaftete im FY24 einen Umsatz von 324 Mio. USD, einen bereinigten operativen Gewinn von 57 Mio. USD und eine Kapitalausgabe von 93 Mio. USD.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 6-K
__________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2025
Commission File Number: 001-41524
___________________________________
Rentokil Initial plc
(Registrant’s name)
___________________________________
Compass House
Manor Royal
Crawley
West Sussex RH10 9PY
United Kingdom
(Address of principal executive office)
_____________________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(1): ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7): ☐
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Completion
of France Workwear business sale dated 30 September
2025
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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.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Date:
30 September 2025
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RENTOKIL INITIAL PLC
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/s/
Rachel Canham
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Name:
Rachel Canham
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Title:
Group General Counsel and Company Secretary
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FAQ
What did Rentokil (RKLIF) sell in this Form 6-K?
Rentokil sold its France Workwear business to H.I.G. Capital for an enterprise value of €410m including an earn-out of up to €30m.
How much cash will Rentokil receive from the sale?
Total net cash proceeds are expected to be approximately €370m (c.$435m), subject to the final earn-out outcome.
How will Rentokil use the proceeds from the sale?
Proceeds will be allocated according to Rentokil's balanced model: deleveraging, organic investment in the core business, and complementary bolt-on M&A.
What was the size and profitability of France Workwear?
In FY24 France Workwear generated $324m revenue, $57m adjusted operating profit, and had $93m capital expenditure.
How does the sale affect Rentokil's business mix?
Following the sale, Rentokil's revenue mix is expected to be approximately 85% Pest Control and 15% Hygiene & Wellbeing.
Rentokil Initial Plc