How Private Equity Is Buying Up Pest Control Companies

Private equity has been consolidating pest control for over a decade, but the pace has accelerated dramatically since 2020. In this episode, Lucas and Luna break down the economics that make termite and rodent control such an attractive roll-up target: recurring revenue from annual service contracts, high margins on chemical treatments, and the ability to cross-sell to a massive homeowner base. They examine the two dominant platform firms — Rollins, which owns Orkin, and ServiceMaster, which owns Terminix — and trace how PE-backed upstarts like Rentokil's American subsidiary are using acquisitions to steal market share. The hosts walk through a typical deal structure: a regional operator doing $5 million in revenue, acquired at 7x EBITDA, then folded into a larger platform to boost margins by cutting overhead and centralizing routing. They also discuss the regulatory headwind from the EPA's ongoing review of organophosphate pesticides, which could raise costs for smaller operators and accelerate the consolidation cycle. Specific numbers: the US pest control market is estimated at $24 billion in 2026, up from $18 billion in 2019, with PE-backed firms now controlling roughly 35% of that total. #PrivateEquity #PestControl #RollUps #Terminix #Orkin #Rentokil #Rollins #ServiceMaster #MergersAndAcquisitions #BusinessAcquisitions #RecurringRevenue #HomeServices #PesticideRegulation #EPA #DealStructure #FexingoBusiness #BusinessPodcast #BuyoutShow Keep every episode free: buymeacoffee.com/fexingo