Rentokil Initial has entered into a joint venture with Haniel to create a combined provider of workwear and hygiene services across a number of countries in central Europe. The JV is to be formed through the transfer of Rentokil’s workwear and hygiene businesses in 10 countries to CWS-Boco, a company owned by Haniel. Rentokil’s workwear businesses in Belgium, Netherlands, Luxembourg, Germany, Austria, Switzerland, Czech Republic, Slovakia, Poland and Sweden are to be transferred to the new JV.
Rentokil is to receive €520 million and an 18 per cent stake in the joint venture, subject to other adjustments. The joint venture does not include pest control, plants or specialist hygiene services – neither does it include Rentokil’s UK business.Andy Ransom, Chief Executive at Rentokil Initial, said: "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 “Right Way” plan.
“Overall, I believe there is a compelling logic in bringing our respective workwear and hygiene businesses together in these European markets, freeing up capital to invest in our higher-growth markets and delivering value for our shareholders.”