British pest control and hygiene company Rentokil Initial has agreed to sell its French workwear business to US-based investment firm Platinum Equity for approximately $464 million (430 million euros). This move reflects Rentokil’s strategy to focus more on its core pest control and hygiene services.
The French workwear division has been part of Rentokil’s portfolio but was considered non-core compared to its expanding hygiene and pest control operations. The transaction is expected to complete by mid-2025, subject to regulatory approvals.
Rentokil aims to use the proceeds to strengthen its balance sheet and invest in growth areas, particularly hygiene services, which have seen rising demand post-pandemic. The company has been repositioning its business to capitalize on shifting market trends and customer needs.
This divestment also underscores the ongoing consolidation and restructuring within the workwear and corporate uniform market across Europe. Platinum Equity, which has a history of acquiring and optimizing industrial and service businesses, will likely look to enhance operational efficiencies and expand the French unit’s reach.
Investors reacted to the announcement with cautious optimism, noting that Rentokil’s sharper focus on its core services could improve profitability in the medium term. Meanwhile, the workwear sector continues to evolve with growing demand for sustainable and tech-integrated uniforms.
What this means for the market
This sale is a reminder that large service conglomerates are increasingly streamlining their portfolios to focus on higher-margin, faster-growing segments. For Rentokil, shedding the workwear business frees resources to accelerate innovation and geographic expansion in pest control and hygiene, areas that have demonstrated resilience even during economic downturns.
Source: Reuters – Rentokil sells French workwear business in $464 million deal
