Year in Review: Pest Control Market Overview, 2023

2023 saw a good deal of merger and acquisition activity in the global pest control market. Here we share an overview of the most notable transactions.

Using the recently published 2023 annual company reports for publicly listed pest control companies, this article provides a summary of the size of the pest control market, along with an overview of the leading global pest control companies and their merger and acquisition activity.

Global pest control market

The value of the global professional pest control market is estimated at between US$23-26 billion (depending on research report) and is expected to grow 5-6% annually over the coming years. With the changing climate and increasing population, the pest pressure and demand for pest control services will continue to increase; the outlook is very positive for the pest control industry. In Australia, according to IBIS World, the professional pest market consisted of 3,427 businesses generating revenue of AU$1.7 billion.

Major pest control companies

The three largest pest control companies globally, covering domestic and commercial pest control, are Rentokil, Rollins (Orkin) and Anticimex (Flick). Rentokil is the largest pest control company in the US and indeed globally, following the US$6.7 billion cash plus shares acquisition of Terminix in 2022, with global revenue from pest control of GBP4.286 billion (Table 1). Revenue in the Pacific region (Australia, New Zealand and Pacific Islands) was approximately GBP125 million (AU$188m).

Table 1: 2023 revenue in US$ millions

Rentokil: Converted from GBP @ 1.244: US$1
Anticimex: Converted from SEK @ 10.04: US$1
Ecolab (revenue for ‘Other’ segments, including Pest Elimination): Converted at AU$ @ 1.5061: US$1

Rollins is the second largest pest control company with sales of just over US$3 billion. However, 93% of these sales were in the United States, with total sales from the rest of world totalling US$219 million. In Australia, Rollins operates under the Orkin brand and has acquired several businesses over recent years.

Anticimex is the third largest company globally, with revenue of just over US$1.5 billion. However, Anticimex is a significant player in the Pacific region. Under the Flick brand in Australia, 2023 revenue totalled approximately US$181 million (AU$272 million).

Ecolab is also a significant player in the pest control market, with global revenue from pest control services reported at US$1.442 million, although this is primarily from commercial pest control services.

Mergers and acquisitions

Mergers and acquisitions (M&As) have a significant impact on the dynamics of the pest control market. Larger companies have the opportunity to acquire businesses to support their growth, while owners of smaller companies have the opportunity to realise the fruits of their labours by selling their businesses. With the large amount of acquisition activity over previous years, it can be difficult for many in the industry to keep track of developments.

Although we acknowledge there have been a number of acquisitions by privately owned small and medium-sized businesses as they also look to grow, this article is focused on the large, multinational, publicly listed companies that publish details of their acquisitions in press releases and financial reports. This article provides a summary of the key activity in 2023.

All three leading pest control companies – Rentokil, Rollins and Anticimex – have active acquisition programs, although in Australia and New Zealand it is Rentokil and Flick (Anticimex) who are the most active.

Rentokil reported spending GBP199 million globally on 34 pest control acquisitions in 2023, with c. GBP76 million in revenue, and is targeting a similar level of acquisitions in 2024. In New Zealand, this included two acquisitions in the rural (non-urban) pest control market: High Country Contracting and Feracon. This followed the acquisitions of EcoFX and Vector Free in 2022, part of their strategy to support the New Zealand Government’s Predator Free 2050 campaign. Although not a 2023 acquisition, the acquisition of AllState Pest Control in Adelaide has been a notable acquisition already in 2024.

Chris King, head of acquisitions for the Pacific region for Rentokil Initial, has confirmed that the company will continue to look for good quality businesses that align with its pest control strategies across the Pacific.

“Rentokil Initial has and will continue to be there to support the pest control industry and business owners as they look to transition to the next phase of their lives, providing an avenue that supports them and ensures that their staff are looked after. Many previous acquisition colleagues continue their journeys with Rentokil Initial and forge strong career paths. I encourage anyone that wants to explore that option or understand what that could look like to reach out to me,” he commented.

Anticimex reported 53 acquisitions globally in 2023, with a combined revenue of approximately US$70 million. In Australia, Flick reported the acquisition of 11 companies from various locations across the country (Table 2).

Table 2: Flick (Anticimex) acquisitions in 2023

In Australia, Orkin has acquired several larger pest control companies over the past ten years, most recently Adams Pest Control in 2020, although there have been no recent acquisitions. However, Orkin continues to actively seek out acquisitions, particularly in the US market. The Fox Pest Control acquisition for US$229.5 million was one of 24 acquisitions in 2023.

Looking ahead in 2024

With the ‘big three’ pest control companies keeping the foot on the pedal with ambitious plans for expansion into 2024, small and medium-sized businesses will continue to be targeted for acquisition, with the US market remaining the key focus.