Rentokil Initial PLC to Acquire Terminix Global Holdings Inc Call - 1st Session Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Could I ask 3, please? First of all, could you maybe talk a little bit about the background? We've obviously seen the Terminix share price, but what -- was this a competitive bid, or did you approach them opportunistically? Then secondly, could you talk about termite claims? Do you know the risks that you are taking on? And can you just update us on the latest with the claims that they have in Florida? And then on the portfolio after the acquisition, could you just talk a little bit about any disposals, especially in Europe? I guess the Nordics, the U.K. but also anywhere in the U.S.

Question: Andrew Charles Grobler - CrTdit Suisse AG, Research Division - Analyst : Three quick ones from me, if I may. Just in terms of returns, this will be, I guess, dilutive to your group return on capital. At what point do you expect this to be EVA positive? Or put another way, you have targeted IRRs of 12% or higher in U.S. [sort of] pest control (inaudible) IRR [would you expect from this deal]. Secondly, and you've covered this to an extent before, you -- PestConnect. The plan was to roll that out in the U.S. relatively soon once all the [IP] was done. Does this change that approach? Do you have to integrate Terminix, first? And third, I'm not sure to what extent you can comment on this, but having talked to Terminix and shareholders of that, are you expecting those shareholders to hold onto the ADRs? Or should we expect [some of that] to flow back to the U.K. through time?