[Breaking News] Whitmire Micro-Gen Sold to Sorex Group

ST. LOUIS, MO. – Whitmire Micro-Gen has joined forces with the Sorex Group, a UK-based pest control manufacturing company. In this strategic acquisition, Sorex Holdings has acquired Whitmire Micro-Gen from JohnsonDiversey. Terms of the sale were not announced.

With complementary values and product lines, both Sorex and Whitmire Micro-Gen are focused on providing innovative solutions to the structural pest control industry. Whitmire Micro-Gen will continue to focus on general insect and termite control products and equipment for the pest management industry. In addition to ongoing investment in their traditional general insect control markets, customers will see continued investment in the termite category and promotion of the Advance Termite Bait System, according to a press release from the company announcing the sale.

The Sorex Group will continue to focus on supplying innovative technology and solutions to control mice, rats, birds and insects within the European market. Both businesses also are investing in expansion into the Asian, Australian and Latin American markets.

"We are both manufacturing and marketing specialists that emphasize formulation expertise, quality, customer service, R&D investment, education and training. This positions us for strong success with a broad and complementary product range," says Sorex’s Managing Director, Dr. Roger Johnson.

"Initially, the companies will operate separately and, despite the anticipated future strategic gains, customers are not anticipated to see any change. This is a great opportunity for both companies, but it is business as usual for our customers," says Andy Symons, president of Whitmire Micro-Gen, St. Louis, Mo. "We are building upon and solidifying strategies already in place and our philosophy, staffing and promotional programs will remain unchanged. We want the joining together of the two companies to be one of those rare deals where the only impact is a positive experience for both our customers and our employees. We will achieve that by prioritizing our customer needs ahead of any other business opportunities."

A NATURAL FIT. In an industry where consolidation is occurring among most of its various entities, Whitmire Micro-Gen’s sale was not a surprise to most. Rumors about the company’s future had been swirling for several months.

"I have suspected for some time that Whitmire Micro-Gen was not a core or strategic business for S.C. Johnson and I expected it to be sold off at some point," said John Bolanos, vice president of Univar.

Chris Donaghy, CEO of Residex, agreed.

"After what took place with Residex over the last two months, nothing surprises me," Donaghy said. "Whitmire had been on and off the block for a long time now, so it really wasn’t a surprise to us." Donaghy, with the help of Speckoz members, purchased Residex on May 1 from Western Pest Services. Residex, which was Western’s distribution arm, became available for purchase when Western sold its pest control business to Rollins Corporation’s Orkin division.

What was a surprise to some was to whom Whitmire Micro-Gen was sold. However, a look at Whitmire Micro-Gen’s recent history would have provided some clues. In September 2002, Whitmire Micro-Gen entered into a partnership with Sorex International under which Sorex introduced Whitmire’s Prescription Treatment® products and support services in Europe, while Whitmire provided access to the U.S. market for selected Sorex technologies. This strategic alliance helped both companies recognize their complementary strengths and the opportunities that the partnership created for both organizations.

"We have been working closely with Sorex for over two years in a transatlantic alliance and see this as an extremely exciting development. It will provide opportunities to strengthen and broaden our portfolio of solutions in the pest control market in the United States, as well as in other international markets and allow us to continue to make pest management more profitable for our customers. It will also create new opportunities for our respective employees," Symons said.

Univar’s Bolanos believes these and other factors will allow the new Whitmire Micro-Gen to continue to operate efficiently. "With very little to no redundancy in product lines, sales people, or organizational structure in the U.S., I see little change in the immediate future," he said.

"Whitmire Micro-Gen was always very supportive of the PMP community, and I’m sure Sorex will continue that level of support going forward," added Residex’s Donaghy. "I don’t believe the change will have a major impact on the industry."

Although Whitmire Micro-Gen has no immediate plans to expand its product offerings, that may change in the months and years ahead. "(The sale) is likely to result in an expanded product portfolio for Whitmire Micro-Gen over time," Bolanos said. For example, many believe Sorex will look to develop a bird control and rodent control presence in the United States.

"If Sorex decides to register and market their bird and rodent control products through Whitmire in the U.S., then that might change the ‘landscape’ quite a bit," said Roland Rhodes, presidents of Rhodes Chemical Co.

While the pest control industry will be monitoring these and other developments resulting from Sorex’s purchase of Whitmire Micro-Gen, one safe bet is that the industry’s trend towards consolidation will continue.

"In a time of rapid changes in markets and products, I believe that there will be more acquisitions and mergers of companies," Rhodes said. "A new company doesn’t have the time to grow a market. The alternative is to buy the market through acquisition."