Scotts does deal to pursue pests

The Scotts Miracle-Gro Company has acquired Action Pest Control as it looks to leverage the equity of its Ortho brand and drive growth in the $7 billion pest control industry.



Scotts said its subsidiary EG Systems, Inc., doing business as Scotts LawnService, signed a definitive agreement to acquire the assets of Action Pest Control, Inc., one of the largest residential pes t control providers in the Midwest. The transaction mark the company's first acquisition of a home pest control business. For more than a year, Scotts LawnService has been operating a pest business in insect prone Florida using the Company's Ortho brand which . The effort provided a successful proving ground for a business model that offers consumers the benefit of a lawn and pest service from the same provider, according to the company.



"Just as the Scotts brand has resonated with our lawn service business, the Ortho brand shows great long-term promise for home pest control," said Scotts chairman and CEO Jim Hagedorn. "The demographics and economics of the service industry are strong strategic fits for our business. We are excited to complete the acquisition of Action Pest and see it as an important step forward in executing our long-term growth strategy."



Scotts LawnService, with anticipated sales of approximately $260 million in fiscal 2014, is currently the number two player in lawn service. Given the fragmented nature of the $7 billion home pest control category, the company believes it can complement organic growth in lawn service by consistently expanding its pest control platform.



Action Pest provides a comprehensive range of residential and commercial pest control services to homeowners and businesses throughout Indiana, Kentucky, and Illinois.