Context

H.I.G. Capital has acquired Rentokil Initial’s Workwear business in France. The strategic rationale for the divestment is to streamline Rentokil Initial's portfolio, allowing the group to focus exclusively on its core market-leading Pest Control and Hygiene & Wellbeing segments. For H.I.G. Capital, the acquisition represents a strategic entry into the French textile services market, providing a high-quality platform with recurring revenues and mission-critical services. The deal was supported by bespoke financing from CVC Credit. This carve-out significantly improves Rentokil’s capital efficiency by reducing annual CapEx requirements and is expected to boost the group's free cash conversion margin by approximately 100 basis points.

Target

Rentokil Initial's France Workwear division is a market leader in the French textile rental and hygiene services sector. Its business model is based on a recurring subscription framework, providing full-cycle textile services including the design, rental, laundry, and repair of workwear, flat linen, and specialized cleanroom garments. The unit's value proposition is anchored in mission-critical reliability and sustainability, serving over 21,000 customers across diverse industries through a nationwide logistics network. Strategically, the company maintains high customer retention (approx. 88%) and operates 34 specialized sites. Following the carve-out, the business will be rebranded to operate as an independent entity, focusing on scaling its leadership in the highly consolidated French textile services market.