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Haniel and Rentokil Initial to form European hygiene and textile services company
German family-run business Haniel, founded in 1756, and UK giant Rentokil Initial have signed a joint venture agreement with the aim of creating an innovative, leading European company for workwear, cleanroom and hygiene services, under the CWS-boco banner.
After acquiring the continental European business from Rentokil Initial in the areas of hygiene, workwear and cleanroom services, Haniel will hold around 82% of the shares, while Rentokil Initial will hold around 18%.
Over the course of the further implementation which should complete by mid-2017, the European CWS-boco activities in 17 countries and Initial activities in 10 European countries will be combined. This does not include the Initial activities in Great Britain and France, which will continue to be managed by Rentokil Initial after the implementation of the joint venture.
Rentokil Initial will retain its Pest Control, Plants, Specialist Hygiene, Medical and Dental operations, too and it has options to acquire Haniel's hygiene business in Italy and washroom and mats business in Ireland. This option is exercisable up to completion of the joint venture.
"Our acquisition and the establishment of the joint venture will further improve the future viability of our sustainable portfolio," says Haniel CEO Stephan Gemkow. "CWS-boco and Initial will have an excellent opportunity to continue their current successful development in the attractive market for workwear, cleanroom and hygiene services.
"As a family-equity company, Haniel is thus again demonstrating its expertise in opening up business prospects for its equity investments through intelligent buy-and-build measures."
The merger of CWS-boco's business activities throughout Europe and Rentokil Initial's Initial activities in the fields of hygiene, workwear and cleanroom will give rise to one of the leading product portfolios with services for business customers from industry, small trade and the service sector. The joint venture offers a wider range of products and services of outstanding quality. The comprehensive, customer-focused service range, outstanding operational performance, the high speed of innovation and the systematic continuation of the digital transformation will set a new benchmark for the whole of Europe.
The joint venture will still be based at the headquarters of CWS-boco in Duisburg and headed up by CEO Max Teichner, who says: "We are delighted by the opportunity to join two strong companies together.
"We are confident that our employees and customers alike will benefit from this, as the two companies focus on different areas. With their bundledknowledge we will expand our range of services and continue the growth phase at CWS-boco."
The ongoing growth will be supported by three global megatrends: Companies' increasing focus on their core processes, which is leading to more outsourcing. The more responsible use of resources such as water, detergents and energy, coupled with higher standards in terms of hygiene, health and safety. In these areas the joint venture will remain the ideal partner with which its customers can achieve their demanding goals moving ahead.
Rentokil Initial's CEO, Andy Ransom, highlights the joint venture's prospects for success, saying:
"We are delighted to announce this joint venture with Haniel, a high-quality organisation with people who share our drive for value creation, respect for colleagues and passion for customer service. This is the right deal at the right time and the next step in the implementation of our strategy. The joint venture will create a sustainable services company that will be able to serve more customers throughout Europe and also offer more extensive opportunities for product development, innovation and the delivery of outstanding customer service, which is at the heart of what we do."
The entire transaction is subject to necessary antitrust approval. Until the deal has been approved by the antitrust authorities and completely closed, there will be no changes for employees, customers or suppliers. For the time being, both companies, CWS-boco and Initial, will continue to operate in the market as before.
CWS-boco International GmbH is one of the leading international providers of professional textile services and washroom hygiene solutions. This includes the well-known CWS cotton towel, soap and fragrance dispensers and dust control mats, as well as industrially washable workwear and business wear, customer-specific corporate fashion collections and protective clothing. All services are offered in a flexible rental service.
The company, which is wholly owned by Franz Haniel & Cie. GmbH, has 17 subsidiaries in Europe and employs around 7,500 employees around the globe. It achieved a turnover of €779 million in 2015.
5th January 2017