The bug slayer is expanding internationally while enjoying solid results in its core markets.
Rollins is often viewed as the acquirer of choice for businesses wishing to preserve their culture, as noted by CFO Paul Edward Northen:
"We continue just to find opportunities for good quality companies that want to join the Rollins family brand, that maybe arent necessarily looking for that biggest check and then have their company broken up. They're looking for an opportunity to be able to join the Rollins family ... to be able to continue to keep that legacy company intact and be able to continue to make improvements from there."
This helps to keep Rollins' acquisition pipeline full. And once Rollins purchases a business, it's typically able to increase its earnings power, as explained by Northen:
"When we acquire a company, depending on what's already in place, we can typically pick up 4 to 5 margin points when we go through and we strip out costs that we would not need to continue to run the company, when we use our purchasing power ... when we use our vehicle leases, when we put them on our benefits. And if there is opportunity to be able to create further synergies from there, whether it's back office or whether it is their management structure, we're able to sometimes do better than that. But we're able to use our tools typically to be able to make them better."
As such, Rollins' growth-through-acquisition strategy should continue to create value for investors in the years ahead.
Acquisitions Keep Rollins' Growth Buzzing -- The Motley Fool
