Pest Control Company Rollins Weighs a Potential Sale

(Bloomberg) -- Rollins Inc., a pest-control services provider, is exploring strategic options including a potential sale, according to people familiar with the matter.

The Atlanta-based company is working with financial advisers, said the people, who asked to not be identified because the matter isn’t public. The company has not yet launched a formal auction and Rollins could opt to remain independent, they said.

A representative for Rollins didn’t immediately respond to calls seeking comment.

Rollins rose as much as 5.3% before settling back to trade down 3% to $43.27 at 3:49 p.m. in New York on Thursday, giving the company a market value of about $14.2 billion.

Deemed an essential service provider during the pandemic lockdown, the company provides pest-control to more than two million customers globally through subsidiaries including Orkin, AllPest and Critter Control, according to its website.

Rollins had a relatively strong first quarter despite the coronavirus pandemic, which sapped demand for its services in hard-hit states including California and New York, executives said discussing earnings in April.

Revenue rose 13.7% year-over-year to $488 million in the quarter while net income fell 2.3% to $43.3 million, according to its first quarter report.

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