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Rollins to Gain From Adams Pest Control Buyout: Here's How

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Rollins, Inc. (ROL - Free Report) is strengthening its foothold in Australia with the help of a strategic acquisition.

The company recently announced that one of its Australia-based subsidiaries completed the purchase of Adams Pest Control Pty Ltd., an independent pest control provider. Financial terms of the deal have been kept under wraps.

Notably, shares of the company have gained 29.8% so far this year, outperforming 12.5% growth of the industry it belongs to.

 

Expansion of Foothold in Australia

With more than 75 years of experience, Adams Pest Control has been working in all aspects of general pest and wildlife control. The company enjoys market dominance in Adelaide and greater Melbourne areas.

Adams Pest Control will join the Orkin Australia portfolio of brands. Peter Taylor, director and general manager of Adams Pest Control, will be joining the Orkin Australia team.

Considering its market reputation so far, Adams Pest Control seems to be a promising addition to Rollins in terms of geographical expansion as well as business improvement.

Notably, Matt Turek, division president of Orkin Canada, Australia and Asia, stated, "I am thrilled to have Adams Pest Control join our family of brands in Australia. Their long history of exceptional customer service is a great compliment to Orkin's growing portfolio of business throughout Australia."

Bottom Line

Acquisitions have been acting as a major growth catalyst in Rollins’ business strategy. With the help of strategic acquisitions, the company continues to expand its global brand recognition, geographical footprint and boost revenues. Notably, Rollins completed seven acquisitions during first-quarter 2020. It made 30 acquisitions in 2019, 38 in 2018 and 23 in 2017.

Zacks Rank and Stocks to Consider

Rollins currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Business Services sector are DocuSign (DOCU - Free Report) , SailPoint Technologies Holdings, Inc. and ManpowerGroup (MAN - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for DocuSign, SailPoint and ManpowerGroup is 31.2%, 15% and 1.5%, respectively.

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