December 16, 2016 / 7:23 AM / a year ago

BRIEF-Rentokil Initial forms JV with Germany's Haniel

Dec 16 (Reuters) - Rentokil Initial Plc :

* Joint venture with Haniel

* Rentokil Initial Plc and Haniel & Cie Holding company have today entered into an agreement to form a joint venture

* Deal creating a leading provider of workwear and hygiene services in europe with combined revenues of c. Eur 1.1bn and apbita of c. Eur 130m

* Joint venture will be formed through transfer of Rentokil Initial Businesses into CWS-BOCO, a company owned by Haniel

* In relation to its investment in JV, company will receive an annual fixed dividend of eur 19m for five years

* Anticipates maintaining its stake in joint venture for a minimum period of three years, and for an anticipated period of five years

* JV brings together rentokil initial’s workwear and hygiene businesses in 10 countries principally in Benelux and Central & Eastern Europe regions

* JV with include Haniel’s businesses in 17 countries which operate under Cws-Boco brand

* Valuation of rentokil initial’s businesses transferring into JV reflects good value at a multiple of 15.2 times APBITA (12 months to 30 June 2016)

* Rentokil initial will receive around eur 520m in cash and a c. 18 pct stake in joint venture, subject to working capital and other adjustments

* Guidance for expenditure on bolt-on acquisitions in 2017 now increased to £100m

* Target for completion is mid-2017 Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 806 749 1136)

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