The total U.S. William Blair/PCO M&A Specialists Pest Index increased 17.4 percent year-over-year in May, showing strong acceleration from the slowdown in April. On a sequential basis, the index increased 2.8 percent from April. This index includes recurring and nonrecurring revenue for residential pest, commercial pest and termite. It does not include residential door-to-door companies.
“We believe the slowdown in April was primarily due to a slow start to the spring season (i.e., colder weather),” says William Blair Equity Researcher Tim Mulrooney. “However, based on recent conversations with pest control operators, the warmer weather picked up in early May, which likely contributed to strong lead generation as the month progressed. In addition, we suspect more aggressive price increases over the last several months also contributed to the stronger result in May.”
The Residential Pest Index increased 18 percent year-over-year and 4 percent on a sequential basis. The Commercial Pest Index increased 20 percent year-over-year and 2 percent on a sequential basis. The Wood Destroying (Termite) Index increased 12 percent year-over-year and 1 percent on a sequential basis. The Bed Bug Index increased 20 percent year-over-year and 8 percent on a sequential basis.
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