Duisburg, 30 June 2017. Franz Haniel & Cie. GmbH (Haniel) and Rentokil Initial formed a joint venture on 30 June 2017. This was preceded on 7 June 2017 by the unconditional approval of the deal by the European antitrust authorities. Under the aegis of CWS-boco International, the two companies will be an innovative and leading European workwear, cleanroom and hygiene services company. Haniel acquires significant portions of Rentokil Initial's central European washroom hygiene and workwear business. Haniel holds approximately 82 per cent of shares, Rentokil Initial approximately 18 per cent of the joint venture.
"This joint venture represents yet another success for us using a buy & build strategy to increase the divisions' growth and profitability", said Haniel CEO Stephan Gemkow. "CWS-boco and Initial are combining their strengths to continue their outstanding performance in the attractive market for workwear, cleanroom and hygiene services. At the same time, this enables us to strengthen our diversified portfolio's future viability." Andy Ransom, CEO at Rentokil Initial, also highlighted the opportunities for success: "The deal aligns with our value-creating capital allocation model perfectly, as not only does it increase our ability to invest in our core growth categories of Pest Control and Hygiene, but it also protects value through an investment in a leading European Workwear and Hygiene business. It represents a step change in the execution of our strategy with 80 per cent of group revenues now coming from Pest Control and Hygiene services."
Ground-breaking portfolio of products and services
This business combination creates one of the leading offerings of workwear, washroom hygiene and cleanroom technology for business customers from the industrial, craft and service sectors. A comprehensive, customer-oriented range of services, outstanding operational performance, high innovative speed and a systematic pursuit of the digital transformation will set new standards throughout Europe.
CWS-boco will contribute its business of 16 national companies to the combination, with Rentokil Initial providing Initial's business in 10 central European countries. The new joint venture thus operates in 16 European countries and employs approximately 10,800 people, who together generate approximately EUR 1.1 billion in revenue.
Thomas Schmidt will become CEO of CWS-boco
The transaction also brings about a change of the top management: with immediate effect, Thomas Schmidt assumes management over the CWS-boco Group, alongside his duties as a member of Haniel’s Management Board. His predecessor, Max Teichner, had announced in April his intention to leave the company for personal reasons once the deal had closed. Since his appointment in 2010, Teichner has led the company to new operational strength and played a vital role in the joint venture. The entire Haniel Management Board expresses its gratitude for his outstanding work in building up and leading the company.
Schmidt, the new CEO, sees significant growth opportunities for the Haniel division: "We are looking forward to getting started with the integration. It is certain that our customers will benefit from the bundled expertise and experience of both companies."
In December 2016, Haniel and Rentokil Initial signed the agreement to form the joint venture.