The owners of WA's biggest pest-control company have reaped the rewards of 15 years work growing the business after selling out to US-listed Rollins Corp late last week.
Allpest WA, established in 1959 but owned for the last 15 years by husband and wife team Greg and Sue Mills, was bought by the American pest-control giant to help it establish a beachhead into the Australian market and Asia, Rollins said in a release to the US market late last week.
Rollins describes itself as the biggest pest controller in the world. It is listed on the New York Stock Exchange with a market capitalisation of $US4.25 billion.
While Rollins did not disclose the purchase price, and Mr Mills said he was contractually restrained from doing so, disclosures by Rollins and US analyst estimates put the likely price well above $40 million.
Mr Mills told _WestBusiness _ Allpest had an annual turnover of about $500,000 a year and a staff of seven when the pair bought the business. The company has since grown to report annual revenue of more than $25 million, with a staff of 160 across the State.
In addition to its traditional residential and commercial markets, Mr Mills said Allpest had built strong inroads into the mining and oil and gas sectors, and also had a substantial biosecurity business, contracting to airports and governments. Allpest had also won contracts offshore, he said.
Rollins said in a statement it intended to continue managing the business in the same way and Mr Mills, who will stay with Allpest in a consulting role through the transition, said he had no doubt the deal would be good for Allpest's staff.
"They've brought one person to Australia, not a whole team. Buying my business allows them to build on the infrastructure that's here, not bring their own infrastructure in. So that's great for my staff and it's really what we were looking for - a company that has a core business in pest control," he said.
Mr Mills said the acquisition also offered Allpest's Perth-based staff the opportunity build on its work to push into overseas markets as part of Rollins' plans to capture more business in Asia.
Allpest's advisers in the transaction were KPMG, Corrs Chambers Westgarth and Paragon Consultants.