LONDON: Rentokil Initial plc said Tuesday it has agreed to sell its U.S.-based SOLitude Lake Management LLC and its Vertex Aquatic Solutions division to Bain Capital for $230 million in cash, the latest move in the company’s effort to streamline its operations.

The deal, structured on a cash-free, debt-free basis, is expected to yield about $180 million in net cash proceeds after taxes, the pest control and hygiene company said.

Rentokil said the sale will further reduce its leverage within its target range and support its capital allocation priorities, which include investing in organic growth and bolt-on acquisitions, paying a progressive dividend and returning surplus capital to shareholders.

SOLitude, which has more than 50 years of combined experience, is the leading lake and pond management company in the United States. Its services include ongoing lake and pond management, shoreline restoration and water quality control.

Chief Executive Mike Duffy said the transaction supports the company’s strategy of building a platform for sustainable profitable growth by simplifying the organization and prioritizing its highest-opportunity markets and categories.

“This disposal further strengthens our balance sheet as we look to accelerate growth and improve margins and free cash flow and deliver on the clear opportunity for shareholder value creation,” Duffy said.

Jacob Donnelly, a partner at Bain Capital, said lake and pond management is becoming increasingly complex as rising water temperatures, nutrient run-off and invasive species place growing pressure on freshwater ecosystems.

He said SOLitude has built the technical depth to address those challenges at scale, combining certified aquatic biologists with a national field organization serving communities, municipalities and property owners.

“We look forward to supporting the SOLitude team as an independent company and investing in the people, technology and geographic reach required to serve more bodies of water in the years ahead,” Donnelly said.

The agreement is subject to Hart-Scott-Rodino antitrust clearance and is expected to close by early in the fourth quarter of 2026.

Goldman Sachs International is acting as sole financial adviser and joint corporate broker to Rentokil Initial.

Rentokil Initial is listed on the London Stock Exchange and the New York Stock Exchange under the ticker symbol RTO.