Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS

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ACQUISITIONS
 12 Months Ended
Dec. 31, 2015
Business Combinations [Abstract]  
ACQUISITIONS
2. ACQUISITIONS

 

The Company has made 12, 12, and 21 acquisitions that are not material individually or in total to the Company’s consolidated financial statements during the years ended December 31, 2015, 2014, and 2013, respectively.  The largest acquisitions made during these periods are as follows:

 

The Company completed its acquisition of Critter Control on February 27, 2015. Critter Control was established by Kevin Clark in 1983 and is headquartered in Traverse City, Michigan. The business is currently 100% franchised, operating in 40 states and 2 Canadian provinces.

 

Rollins Australia, a wholly-owned subsidiary of the Company, acquired Allpest WA (“Allpest”), in February 2014. Allpest was established in 1959 and is headquartered in Perth, Australia. Allpest provides traditional commercial, residential, and termite service as well as consulting services on border protection related to Australia’s biosecurity program and provides specialized services to Australia’s mining and oil and gas sectors.

 

Acquisition of Wilco Enterprises, Inc. (sole holder of PermaTreat Exterminating Company, Inc. d/b/a PermaTreat Pest Control, Inc.) (“PermaTreat”) – The Company completed the acquisition of PermaTreat effective August 1, 2014. PermaTreat is a leading pest control company located in Central and Northern Virginia and was founded in 1967. The Company issued 873,349 shares of its $1 par value common stock valued at $18.79 per share to Joseph R. Wilson and Jack Broome.

 

Total cash purchase price for the Company’s acquisitions in 2015 and 2014 were $33.5 million and $63.3 million, respectively.

 

The fair values of major classes of assets acquired and liabilities assumed along with the contingent consideration liability recorded during the valuation period of acquisition is included in the reconciliation of the total consideration as follows (in thousands):

 

December 31,   2015   2014
Accounts receivable, net   $ 1,711     $ 2,594  
Materials and supplies     71       481  
Equipment and property     948       4,516  
Goodwill     196       48,477  
Customer contracts     12,398       28,237  
Other intangible assets     20,092       6,471  
Current liabilities     (2,329 )     (6,733 )
Other assets and liabilities, net     460       (2,725 )
Total consideration paid     33,547       81,318  
Less:  Common Stock Payment     0       (16,413 )
Less:  Contingent consideration liability     (85 )     (1,570 )
Total cash purchase price   $ 33,462     $ 63,335