Rentokil Initial has agreed to sell its US aquatic management business SOLitude Lake Management and its Vertex Aquatic Solutions division to private equity investment firm Bain Capital for $230m, as part of a further simplification of the group's portfolio.

The transaction, which is on a cash-free, debt-free basis, is expected to generate around $180m of net cash proceeds after tax. SOLitude generated $112m of revenue and $16m of adjusted operating profit in FY2025, making the sale price around 14 times its adjusted operating profit.

Rentokil said the disposal of SOLitude, which provides lake and pond management services including water quality control, shoreline restoration and aquatic ecosystem management, would further reduce leverage and support its capital allocation priorities, including organic investment, bolt-on acquisitions, a progressive dividend and potentially returning surplus capital to shareholders.

The disposal continues Rentokil's efforts to focus the group on its core pest-control, hygiene and related operations while strengthening its balance sheet and creating capacity for investment and acquisitions. The company, headquartered in Crawley, West Sussex, is one of the world's largest pest-control businesses and also provides hygiene and wellbeing services.

Shares in the FTSE 100 firm were trading trading moderately higher on Tuesday morning, up around 0.5% to 319.2p.

CEO Mike Duffy said: “This transaction supports our strategy of building a platform for sustainable profitable growth through greater simplification of the organisation and specifically prioritising our highest opportunity markets and categories. The disposal further strengthens our balance sheet as we look to accelerate growth and improve margins and free cash flow and deliver on the clear opportunity for shareholder value creation.”

Jacob Donnelly, partner at Bain Capital, added: "Lake and pond management is becoming increasingly complex as rising water temperatures, nutrient run-off and invasive species place growing pressure on freshwater ecosystems. SOLitude has built the technical depth to address these challenges at scale, combining certified aquatic biologists with a national field organisation serving communities, municipalities and property owners across the country. We look forward to supporting the SOLitude team as an independent company and investing in the people, technology and geographic reach required to serve more bodies of water in the years ahead."

The deal is subject to US regulatory clearance is expected to complete by early Q4 2026.

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