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Business combinations (Tables) | 12 Months Ended
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Dec. 31, 2022
Business combinations |
Summary of goodwill, fair value of net assets acquired, provisional fair values of assets and liabilities arising from acquisitions and cash outflow from current and past acquisitions | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Individually | ​ | ​ | ​ | ​
​ | ​ | Terminix Global | ​ | immaterial | ​ | ​ | ​ | ​
​ | ​ | Holdings, Inc. | ​ | acquisitions | ​ | Total | ​ | ​
​ | ​ | 2022 | ​ | 2022 | ​ | 2022 | ​ | 2021
​ | ​ | £m | ​ | £m | ​ | £m | ​ | £m
Purchase consideration |  |  |  | ​ | ​ |  | ​ |
– Cash paid |  | 1,087 |  | 214 | ​ | 1,301 | ​ | 273
– Deferred and contingent consideration |  | — |  | 45 | ​ | 45 | ​ | 41
– Equity interests1 | ​ | 3,023 | ​ | — | ​ | 3,023 | ​ | —
Total purchase consideration |  | 4,110 |  | 259 | ​ | 4,369 | ​ | 314
Fair value of net assets acquired |  | (934) |  | (87) | ​ | (1,021) | ​ | (83)
Goodwill from current-year acquisitions |  | 3,176 |  | 172 | ​ | 3,348 | ​ | 231
Goodwill expected to be deductible for tax purposes | ​ | — | ​ | 60 | ​ | 60 | ​ | 146
1.Equity interests in Rentokil Initial plc issued to shareholders of £3,007m and replacement employee share awards of £16m. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Individually | ​ | ​ | ​ | ​
​ | ​ | Terminix Global | ​ | immaterial | ​ | ​ | ​ | ​
​ | ​ | Holdings, Inc. | ​ | acquisitions | ​ | Total | ​ | ​
​ | ​ | 2022 | ​ | 2022 | ​ | 2022 | ​ | 2021
​ | ​ | £m | ​ | £m | ​ | £m | ​ | £m
Non-current assets |  |  |  | ​ | ​ | ​ | ​ |
– Intangible assets2 |  | 2,027 |  | 74 | ​ | 2,101 | ​ | 71
– Property, plant and equipment3 |  | 249 |  | 14 | ​ | 263 | ​ | 13
– Other non-current assets |  | 143 |  | — | ​ | 143 | ​ | 2
Current assets4 |  | 701 |  | 28 | ​ | 729 | ​ | 37
Current liabilities5 |  | (311) |  | (11) | ​ | (322) | ​ | (26)
Non-current liabilities6 |  | (1,875) |  | (18) | ​ | (1,893) | ​ | (14)
Net assets acquired |  | 934 |  | 87 | ​ | 1,021 | ​ | 83
1. | The provisional fair values will be finalised in the 2023 Financial Statements. The fair values are provisional since the acquisition accounting has not yet been finalised, primarily due to the proximity of many acquisitions to the year end.
2. | Includes £778m (2021: £70m) of customer lists, £1,292m (2021: £nil) of indefinite-lived brands and £31m (2021: £1m) of other intangibles.
3. | Includes £200m (2021: £2m) of right-of-use assets.
4. | Includes cash acquired of £322m (2021: £6m), inventory of £48m (2021: £3m) and trade and other receivables of £359m (2021: £28m).
5. | Includes trade and other payables of £322m (2021: £26m).
6. | Includes £445m of deferred tax liabilities relating to acquired intangibles (2021: £8m), £749m of debt that was acquired with the Terminix business and repaid in November 2022 (2021: £nil), lease liabilities of £214m (2021: £2m), termite damage claims provisions of £335m (2021: £nil) and other provisions of £140m (2021: £2m).
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | Individually | ​ | ​ |  | ​
​ | ​ | Terminix Global | ​ | immaterial | ​ | ​ | ​ | ​
​ | ​ | Holdings, Inc. | ​ | acquisitions | ​ | Total | ​ | ​
​ | ​ | 2022 | ​ | 2022 | ​ | 2022 |  | 2021
​ | ​ | £m | ​ | £m | ​ | £m | ​ | £m
Total purchase consideration |  | 4,110 | ​ | 259 | ​ | 4,369 |  | 314
Equity interests | ​ | (3,023) | ​ | — | ​ | (3,023) | ​ | —
Consideration payable in future periods |  | — | ​ | (45) | ​ | (45) |  | (41)
Purchase consideration paid in cash |  | 1,087 | ​ | 214 | ​ | 1,301 |  | 273
Cash and cash equivalents in acquired companies and businesses |  | (313) | ​ | (9) | ​ | (322) |  | (6)
Cash outflow on current period acquisitions |  | 774 | ​ | 205 | ​ | 979 |  | 267
Deferred consideration paid |  | — | ​ | 39 | ​ | 39 |  | 196
Cash outflow on current and past acquisitions |  | 774 | ​ | 244 | ​ | 1,018 |  | 463

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