Rollins, Inc. disclosed a secondary public offering of 17,391,305 shares of its common stock, priced at $57.50 per share, with an expected closing date of November 12, 2025. The offering is being executed by existing shareholders LOR, Inc. and Rollins Holding Company, Inc., and Rollins itself will not receive any proceeds from the sale.
In conjunction with the offering, Rollins agreed to repurchase 3,478,260 of the offered shares for approximately $200 million at the same per‑share price. The repurchase is funded with cash on hand and borrowings under the company’s commercial paper program, and Morgan Stanley, the sole bookrunner, retains a 30‑day option to purchase up to an additional 2,608,695 shares.
The transaction provides liquidity for the selling shareholders while leaving Rollins’ capital structure unchanged. The 365‑day lock‑up agreements prevent the selling shareholders from selling the shares for one year after the pricing date, helping to stabilize the market supply of shares.
Market reaction to the announcement was negative, reflecting concerns about the increased supply of shares. However, the company’s underlying business remains strong: Q3 2025 revenue rose 12.0% year‑over‑year to $1.03 billion, and adjusted earnings per share increased 20.7% to $0.35. Management has expressed confidence in continued double‑digit earnings growth and free‑cash‑flow conversion above 100% for 2025.
Strategically, the secondary offering follows a pattern of similar transactions, such as the September 2023 offering, where existing shareholders sought liquidity and Rollins offset dilution through a share repurchase. The company’s approach demonstrates a disciplined capital allocation strategy that balances shareholder liquidity needs with the maintenance of a stable share count and a robust capital structure.
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