The pending merger of
Terminix Global Holdings ( TMX Quick Quote TMX - Free Report) with Rentokil Initial plc cleared the required antitrust process in the United States — satisfying one of the main conditions for the completion of the deal. This merger will bring together two complementary businesses and create a global leader in pest control and hygiene & wellbeing, and the leader in the pest control business in North America — the world’s largest pest control market. The business will have a strong platform for growth, particularly in North America, and an attractive financial profile. On Dec 14, 2021, both the parties had entered into an agreement under which Rentokil Initial will acquire Terminix for stock. On Mar 14, 2022, the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired, thereby completing the necessary antitrust process in the United States. However, a number of other conditions still remain to be fulfilled. These include shareholder approval of both the companies, the registration of Rentokil’s American Depository Shares (“ADSs’”) and their listing on the New York Stock Exchange. The merger is expected to close by the end of the third quarter of 2022. Earlier this month, Terminix reported strong fourth-quarter 2021 results. The company reported a year-over-year increase of 5% in revenues to $484 million. TWI witnessed double-digit organic growth in termite and home service completions, 7% growth in termite renewals and 5% growth in residential pest control while making solid progress on the CxP and Terminix Way initiatives. The company’s revenues increased 4% year on year to $2,045 million in 2021. Adjusted earnings per share (EPS) surged 51% to $1.43 from the prior year. Terminix, along with other players like W.W. Grainger Inc. ( GWW Quick Quote GWW - Free Report) , SiteOne Landscape Supply ( SITE Quick Quote SITE - Free Report) and DMC Global ( BOOM Quick Quote BOOM - Free Report) , fall under the Zacks Industrial Services industry. Grainger reported adjusted EPS of $5.44 in fourth-quarter 2021, which increased 49% year over year, primarily on higher operating earnings and lower outstanding shares. GWW’s quarterly revenues rose 14% year over year to $3,359 million. Grainger projects net sales for the current year between $14.1 billion and $14.5 billion. The company anticipates earnings per share in the band of $23.50-$25.50 for 2022. SiteOne Landscape’s fourth-quarterly 2021 earnings soared 140% year on year to 60 cents per share. Revenues of $805.2 million for the quarter reflected a 19% year-on-year increase aided by solid demand across all product lines and higher prices. Acquisitions contributed 7% to net sales growth for the quarter. For fiscal 2022, Site One expects adjusted EBITDA in the range of $430 million to $450 million, which represents growth of 4% to 8% over 2021. DMC Global reported fourth-quarter 2021 EPS of 1 cent against a loss of 5 cents per share a year ago. The company posted revenues of $71.84 million in the quarter, up 26% compared with year-ago revenues of $57.11 million. DMC Global expects first-quarter 2022 consolidated sales in a range of $125 million to $135 million. Adjusted EBITDA is expected to be $8.0 million to $10.0 million.