BUZZ-Rentokil: boosted by US pest control acquisition

** Rentokil up at 6-week highs after buys US pest control business Steritech for $425 mln

** Subject to regulatory approval

** Premier AM's head UK equities Chris White calls deal strategically right, but punchy multiple paid -- though Pest Control acquisitions generally don't come cheap as very defensive & consequently cos valued highly by market

** White adds that if Rentokil can deliver on promised synergies multiple paid comes down to more acceptable levels

** PM has previously flagged co as a potential break-up story; Rentokil offers services from pest control to the supply of workwear & co could sell Hygiene & Workwear to focus on Pest Control which has strong growth prospects

** In Pest, Rentokil market leader in most countries it operates in (47 of 66, Investec (LSE: INVP.L - news) said back in May)

** Stock up 3.3%, 2nd-top FTSE 250 riser in volume 40% of its 90-day daily avg after 1.5 hours (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)