Franz Haniel & Cie. GmbH, XS0482703286

Franz Haniel & Cie. GmbH, XS0482703286

16.12.2016 - 08:29:15

Franz Haniel & Cie. GmbH: Haniel and Rentokil Initial sign agreement to form leading European company for hygiene and textile services

CWS-boco and Rentokil Initial services to be merged under CWS-boco holding roof

Haniel and Rentokil Initial sign agreement to form leading European company for hygiene and textile services

Duisburg/Camberley, 16.12.2016. Haniel and Rentokil Initial have signed an agreement to create a joint venture on 15 December 2016. The goal is to create a highly innovative, leading European company for workwear, cleanroom and hygiene services. After acquiring the continental European business from Rentokil Initial in the areas of hygiene, workwear and cleanroom services, Haniel will hold around 82 per cent of the shares, while Rentokil Initial will hold around 18 per cent. The aim is to complete the process of establishing the joint venture under the CWS-boco holding roof by the middle of 2017.

"Our acquisition and the establishment of the joint venture will further improve the future viability of our sustainable portfolio," said 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-focussed 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.

Over the course of the further implementation that is to take place 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. Besides, Rentokil Initial has options to acquire the business in Italy and the washroom and mats business in Ireland. This option is exercisable up to completion of the joint venture.

The joint venture will still be based at the headquarters of CWS-boco in Duisburg. Likewise, the current CWS-boco management headed by CEO Max Teichner will manage the newly formed company. Teichner: "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 bundled knowledge 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: "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.

More information is available on www.haniel.de/en/press/news-update.

Press Contact Haniel Dietmar Bochert, Senior Vice President Communications, Telephone: +49 203 806-578, Telefax: +49 203 806-80578, E-Mail: dbochert@haniel.de

Rentokil Initial Malcolm Padley, Director of Corporate Communications, Telephone: +44 1276 536-580, E-Mail: malcolm.padley@rentokil-initial.com

CWS-boco Press Contact Specialist Media Hygiene, Wash Room, Clean Room, Workwear Talar Arzuyan-Kadoglou, Head of Corporate Communications & Responsibility Telephone: +49 6103 309-1032, Telefax: +49 6103 309-1729, E-Mail: Talar.Arzuyan-Kadoglou@cws-boco.com

Contact Finance Haniel Dr Axel Gros, Senior Vice President Finance, Telephone: +49 203 806-355, Telefax: +49 203 806-80355, E-Mail: agros@haniel.de

About Haniel Franz Haniel & Cie. GmbH is a German family equity company which has been headquartered in Duisburg-Ruhrort since it was founded in 1756. It is from there that the Holding Company, which is wholly owned by the family, manages a diversified portfolio in line with a long-term investment strategy as a value developer. Haniel's portfolio currently includes four business divisions which are independently responsible for their own operating business and which hold a leading market position in their respective sectors: BekaertDeslee, CWS-boco and ELG (wholly owned), TAKKT (majority owned). In addition, there is the METRO GROUP financial investment.

For more information, visit www.haniel.de/en. About Rentokil Initial Rentokil Initial plc is one of the largest business service providers in the world and is represented in over 60 countries. Millions of people rely on the services of the global corporation every day. With its network of local experts, the company offers services mainly in the areas of pest control, workwear, hygiene. In 2015, the Group generated sales of £ 1,759.0 million and employed more than 31,400 people.

For more information, visit www.rentokil-initial.com.

About CWS-boco 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, protective clothing from boco. All services are offered in a flexible rental service. The CWS- boco Group achieved a turnover of EUR779 million in 2015. The company has 17 subsidiaries in Europe and employs around 7,500 employees around the globe. CWS-boco is wholly owned by Franz Haniel & Cie. GmbH. Further information can be found at: www.cws-boco.com

This release is also available at www.haniel.de/en/.

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Document: http://n.eqs.com/c/fncls.ssp?u=UTRFWGPADS Document title: Press Release Haniel and Rentokil Initial

16.12.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: Franz Haniel & Cie. GmbH Franz-Haniel-Platz 1 47119 Duisburg Germany Phone: +49 (0)203 806 578 Fax: +49 (0)203 806 80 578 E-mail: dbochert@haniel.de Internet: www.haniel.de ISIN: XS0482703286, XS0459131636 WKN: 601960, A1A6NE Listed: Regulated Market in Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart; Open Market in Frankfurt

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