Rentokil to Buy Terminix in $6.7 Billion Pest-Control Deal (3)

Rentokil Initial Plc agreed to buy Terminix Global Holdings Inc. to expand in the U.S., the world’s largest pest-control market.

The stock-and-cash transaction values the company at $6.7 billion with an implied price of $55 a share, according to a statement. That’s a premium of 47% over Terminix’s last close. Both boards backed the deal, which ranks as Rentokil’s largest-ever acquisition.

Terminix, which eliminates pests ranging from rats and cockroaches to scorpions, is among the most recognized U.S. brands in termite services. The transaction will allow Rentokil to increase scale as well as cut costs, and will start boosting ...