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Haniel and Rentokil Initial have signed an agreement to create a joint venture on 15 December 2016. The goal is to create a highly innovative, leading European company for workwear, cleanroom and hygiene services. After acquiring the continental European business from Rentokil Initial in the areas of hygiene, workwear and cleanroom services, Haniel will hold around 82 per cent of the shares, while Rentokil Initial will hold around 18 per cent. The aim is to complete the process of establishing the joint venture under the CWS-boco holding roof by the middle of 2017.
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“Our acquisition and the establishment of the joint venture will further improve the future viability of our sustainable portfolio,” said Haniel CEO Stephan Gemkow. “CWS-boco and Initial will have an excellent opportunity to continue their current successful development in the attractive market for workwear, cleanroom and hygiene services.” As a family-equity company, Haniel is thus again demonstrating its expertise in opening up business prospects for its equity investments through intelligent buy-and-build measures.
The merger of CWS-boco’s business activities throughout Europe and Rentokil Initial’s Initial activities in the fields of hygiene, workwear and cleanroom will give rise to one of the leading product portfolios with services for business customers from industry, small trade and the service sector. The joint venture offers a wider range of products and services of outstanding quality. The comprehensive, customer-focussed service range, outstanding operational performance, the high speed of innovation and the systematic continuation of the digital transformation will set a new benchmark for the whole of Europe.
Over the course of the further implementation that is to take place by mid-2017, the European CWS-boco activities in 17 countries and Initial activities in 10 European countries will be combined. This does not include the Initial activities in Great Britain and France, which will continue to be managed by Rentokil Initial after the implementation of the joint venture. Rentokil Initial will retain its Pest Control, Plants, Specialist Hygiene, Medical and Dental operations, too. Besides, Rentokil Initial has options to acquire the business in Italy and the washroom and mats business in Ireland. This option is exercisable up to completion of the joint venture.
The joint venture will still be based at the headquarters of CWS-boco in Duisburg. Likewise, the current CWS-boco management headed by CEO Max Teichner will manage the newly formed company. Teichner: “We are delighted by the opportunity to join two strong companies together. We are confident that our employees and customers alike will benefit from this, as the two companies focus on different areas. With their bundled knowledge we will expand our range of services and continue the growth phase at CWS-boco.”
The ongoing growth will be supported by three global megatrends: Companies’ increasing focus on their core processes, which is leading to more outsourcing. The more responsible use of resources such as water, detergents and energy, coupled with higher standards in terms of hygiene, health and safety. In these areas the joint venture will remain the ideal partner with which its customers can achieve their demanding goals moving ahead.
Rentokil Initial’s CEO, Andy Ransom, highlights the joint venture’s prospects for success: “We are delighted to announce this joint venture with Haniel, a high-quality organisation with people who share our drive for value creation, respect for colleagues and passion for customer service. This is the right deal at the right time and the next step in the implementation of our strategy. The Joint Venture will create a sustainable services company that will be able to serve more customers throughout Europe and also offer more extensive opportunities for product development, innovation and the delivery of outstanding customer service, which is at the heart of what we do.”
The entire transaction is subject to necessary antitrust approval. Until the deal has been approved by the antitrust authorities and completely closed, there will be no changes for employees, customers or suppliers. For the time being, both companies, CWS-boco and Initial, will continue to operate in the market as before.
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