Rollins, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS

ACQUISITIONS

12 Months Ended

Dec. 31, 2018

2. ACQUISITIONS

The Company has made 38 and 23 acquisitions during the years ended December 31, 2018, and 2017, respectively, that are not material individually or in the aggregate to the Company’s consolidated financial statements. The largest acquisition made during these periods is as follows:

The Company completed the acquisition of Northwest Pest Control effective August 1, 2017. Northwest was established in 1951 and services approximately 120,000 customers in Georgia, South Carolina, Tennessee, Alabama, and North Carolina. Northwest Pest Control is the 17th largest pest control operator in the country, making it the largest Rollins acquisition since the Company acquired HomeTeam Pest Defense in 2008.

Total cash purchase price for the Company’s acquisitions in 2018 and 2017 were $76.8 million and $130.2 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,	2018			2017
Accounts receivable	$	3,558		$	3,836
Materials and supplies		556			312
Equipment and property		7,374			3,027
Goodwill		25,605			87,261
Customer contracts		62,228			60,695
Other intangible assets		6,936			20,086
Current liabilities		(21,536	)		(30,344	)
Other assets and liabilities, net		(3,089	)		1,209
Total consideration paid		81,632			146,082
Less: Contingent consideration liability		(4,863	)		(15,893	)
Total cash purchase price	$	76,769		$	130,189