Rentokil snares rat catching firm

Rentokil Initial returned to the acquisition trail today with the £80m (€116m) proposed takeover of America’s fourth largest pest control company.

The services group, which is battling to revive its fortunes following a slide in profits, said it had entered into an agreement to buy Pennsylvania-based JC Ehrlich in a bid to enhance its position in the “attractive” American market.

It is the biggest deal since Rentokil appointed Australian Doug Flynn as chief executive – from marketing services group Aegis last May – in an effort to return the group to profitability.