PestCo Holdings Expands Houston Footprint with Bio-Tech Pest Control Acquisition

The consolidation wave sweeping through America's pest control industry shows no signs of abating. PestCo Holdings, a portfolio company of St. Louis-based private equity firm Thompson Street Capital Partners, announced today the acquisition of Bio-Tech Pest Control, a well-established operator serving the Houston metropolitan area. The deal marks another strategic step in PestCo's methodical expansion across high-growth U.S. markets and underscores the pest control sector's enduring appeal to financial sponsors seeking resilient, cash-generative service businesses.

Based in Spring, Texas, Bio-Tech Pest Control has spent more than three decades building a reputation as a leading provider of residential and commercial pest control services throughout metropolitan Houston. The company's founders, Pierre Riettini and Jason Pitman, expressed bittersweet sentiments about the transaction, acknowledging the difficulty of relinquishing control while expressing confidence in PestCo's stewardship. "For over 30 years, we worked hard to build a tremendous company with many great people involved along the way," they said in a joint statement. "As hard as it is to let go, we felt that PestCo was the right fit, and this is the right time."

Financial terms of the transaction were not disclosed, consistent with the private nature of most lower-middle-market pest control acquisitions. However, the deal's strategic rationale is transparent: Houston represents one of the most attractive growth markets in the United States, and Bio-Tech provides PestCo with an established customer base and operational infrastructure in a city experiencing explosive demographic and economic expansion.

Houston's selection as a target market reflects careful strategic planning rather than opportunistic deal-making. As of October 2025, Houston remains one of the fastest-growing U.S. commercial real estate markets, supported by a metro population of 7.5 million and nearly 200,000 new residents added between 2023 and 2024. The city's growth trajectory shows no signs of moderating—metro Houston added nearly 200,000 residents in 2024, bringing its population to 7.8 million people.

This population surge translates directly into demand for pest control services. Every new residential development, apartment complex, commercial building, and industrial facility requires ongoing pest management—creating a naturally expanding addressable market for operators like PestCo. The city's warm, humid climate further amplifies demand, as subtropical conditions provide ideal breeding environments for termites, mosquitoes, rodents, and other pests that plague both homeowners and businesses.

Houston's economic diversity provides additional insulation against cyclical downturns. Unlike cities dependent on a single industry, Houston's economy spans energy, healthcare, aerospace, manufacturing, and logistics. This diversification enhances resilience and supports sustained growth in both residential and commercial real estate markets—the twin pillars underlying pest control demand.

"We continue to expand our presence in the great state of Texas and are excited about the addition of the Bio-Tech team to the PestCo family," said Jay Keating, CEO of PestCo. "Our goals remain consistent in that we will strive to earn the loyalty of each Bio-Tech customer, while expanding opportunities to PestCo team members across the U.S."

PestCo's acquisition of Bio-Tech exemplifies the classic private equity roll-up strategy that has transformed the pest control industry over the past decade. The sector's fragmentation—characterized by thousands of small, family-owned operators—creates abundant acquisition opportunities for well-capitalized platforms seeking to build scale through consolidation.

According to industry sources, PestCo has acquired ten companies since its formation in November 2021 in partnership with pest control industry executive Jay Keating. This aggressive acquisition pace—averaging more than three deals per year—demonstrates Thompson Street Capital Partners' commitment to rapidly building a national platform capable of competing with industry giants like Rollins (parent of Orkin) and Rentokil Terminix.

The roll-up thesis rests on several compelling value-creation levers. First, consolidation generates immediate cost synergies through centralized back-office functions, consolidated purchasing power for chemicals and equipment, and optimized routing and scheduling. Second, larger platforms can invest in technology, training, and marketing capabilities that remain economically unfeasible for smaller independents. Third, geographic density within specific markets improves service efficiency and customer retention while creating barriers to entry for competitors.

Dan Cooper, Managing Director at Thompson Street Capital Partners, emphasized the strategic fit: "Thompson Street is pleased to support PestCo's continued expansion in the Houston metropolitan area through the acquisition of Bio-Tech, a well-established and respected player in the region."

The pest control industry's attractiveness to private equity extends beyond consolidation opportunities to encompass favorable underlying fundamentals. The global pest control market demonstrates impressive growth momentum, with projections indicating substantial expansion over the coming decade.

Industry analysts project the global pest control market is poised for steady expansion, projected to rise from USD 26.9 billion in 2024 to USD 44.3 billion by 2035, growing at a CAGR of 6.4% during 2025–2035. Alternative forecasts show similar optimism, with one analysis indicating pest control service market size was $22.64 billion in 2023, is projected to reach $34.3 billion by 2030, at a CAGR of 6.3%.

These growth rates significantly outpace general GDP expansion, reflecting several secular tailwinds. Urbanization concentrates populations in environments conducive to pest proliferation. Climate change extends breeding seasons and expands the geographic range of various pest species. Rising health and safety awareness—particularly following the COVID-19 pandemic—has elevated hygiene standards and increased willingness to invest in professional pest management. Regulatory pressures on food service, healthcare, and hospitality sectors mandate regular pest control services, creating sticky commercial contracts with predictable revenue streams.

The residential segment, which represents approximately half of total market demand, benefits from the non-discretionary nature of pest control spending. Homeowners facing termite infestations, bedbug outbreaks, or rodent problems rarely defer treatment due to economic uncertainty. This defensive characteristic provides revenue stability even during recessionary periods—a quality highly prized by private equity investors seeking downside protection.

PestCo's focus on Texas reflects both the state's exceptional growth dynamics and the strategic logic of building geographic density. Texas has emerged as America's economic powerhouse, attracting businesses and residents fleeing high-tax states while benefiting from favorable demographics, business-friendly regulations, and abundant land for development.

The Bio-Tech acquisition follows a pattern of Texas-focused deals by PestCo, which has systematically built presence across the state's major metropolitan areas. Previous acquisitions have targeted markets including Dallas-Fort Worth, Austin, San Antonio, and other high-growth Texas cities. This geographic clustering enables PestCo to leverage regional management infrastructure, optimize technician routing across adjacent service territories, and build brand recognition within the state.

Houston specifically offers unique advantages beyond sheer population growth. The city's sprawling geography—covering more than 670 square miles within city limits and extending across a nine-county metropolitan area—creates vast service territories with limited competitive overlap. The prevalence of single-family homes with yards, combined with Houston's notorious termite and mosquito problems, generates robust residential demand. Meanwhile, the city's massive industrial complex, including petrochemical facilities, warehouses, and logistics centers, provides substantial commercial opportunities.

The Bio-Tech transaction also highlights a critical dynamic driving pest control M&A activity: the aging of founder-operators and the resulting succession challenges facing family-owned businesses. Pierre Riettini and Jason Pitman's decision to sell after building Bio-Tech over three decades reflects a common pattern across the industry.

Many pest control companies were founded in the 1980s and 1990s by entrepreneurs who built successful local or regional businesses but now face retirement without obvious succession plans. Children may pursue different careers, and recruiting external management for small, privately-held service businesses presents challenges. For these founders, selling to a well-capitalized platform like PestCo offers liquidity, ensures business continuity for employees and customers, and provides peace of mind that their life's work will be preserved and grown.

"We know that PestCo will treat our employees and customers every bit as well as we did, and we're excited to see where Bio-Tech goes from here," Riettini and Pitman stated, expressing confidence in the transition.

This generational transfer of ownership creates a sustained pipeline of acquisition opportunities for consolidators. Industry observers estimate that thousands of pest control companies across the United States will change hands over the next decade as baby boomer founders reach retirement age. Private equity-backed platforms like PestCo are positioning themselves to capture a significant share of these transactions.

PestCo's growth trajectory positions the company within an increasingly competitive middle market, situated between massive public companies and thousands of small independents. The pest control industry exhibits a barbell structure, with a handful of large national players commanding significant market share while a fragmented tail of small operators serves local markets.

Rollins Inc., the industry leader operating under brands including Orkin, HomeTeam Pest Defense, and Clark Pest Control, generates billions in annual revenue and maintains a presence across North America and internationally. Rentokil Terminix, formed through the 2022 merger of Rentokil Initial and Terminix, represents another formidable competitor with global scale. These giants benefit from brand recognition, national account capabilities, and substantial resources for technology investment and marketing.

However, the industry's local nature—pest problems require on-site service by trained technicians—limits the advantages of pure scale and preserves opportunities for regional platforms. Customers often prefer local providers with deep community ties and responsive service. This dynamic has enabled private equity-backed regional consolidators to thrive by combining local market knowledge with professional management and capital resources.

PestCo's strategy appears focused on building a "super-regional" platform with density in high-growth markets rather than pursuing thin national coverage. This approach maximizes operational efficiency while maintaining the local service quality that drives customer retention. As the platform scales, PestCo can increasingly compete for commercial contracts with multi-location customers seeking regional or national service providers.

While the Bio-Tech acquisition announcement focused on traditional strategic rationale, the pest control industry is experiencing significant technological disruption that will shape competitive dynamics in coming years. Industry analysts note that the pest control market is shifting from chemical intensity to data intelligence, with AI and IoT-led monitoring projected to account for over 30% of service revenues by 2030.

Smart monitoring systems using sensors and cameras can detect pest activity in real-time, enabling proactive rather than reactive service. Route optimization software powered by artificial intelligence improves technician productivity and reduces fuel costs. Customer relationship management platforms enhance retention through automated scheduling, digital invoicing, and targeted marketing. These technologies require substantial upfront investment but generate meaningful competitive advantages for operators that implement them effectively.

Larger platforms like PestCo can amortize technology investments across broader customer bases, creating scale advantages that smaller independents struggle to match. This technological imperative provides additional rationale for consolidation, as acquired companies gain access to superior systems and capabilities that enhance service quality and operational efficiency.

Environmental sustainability represents another emerging trend reshaping the industry. Growing consumer preference for eco-friendly pest management solutions has accelerated adoption of integrated pest management (IPM) approaches that minimize chemical usage through prevention, monitoring, and targeted treatment. Companies that successfully navigate this transition toward "green" pest control can capture premium pricing and appeal to environmentally conscious customers, particularly in upscale residential markets and among corporate clients with ESG commitments.

The PestCo-Bio-Tech transaction, while modest in isolation, reflects broader themes that will continue shaping the pest control industry. Private equity capital will remain abundant for high-quality platforms demonstrating disciplined acquisition strategies and operational excellence. Founder-owned businesses will continue seeking exit opportunities, providing a steady deal flow for consolidators. High-growth markets like Houston will command premium valuations as acquirers compete for presence in attractive geographies.

For Thompson Street Capital Partners, the deal represents incremental progress toward building a valuable platform that could eventually pursue a strategic sale to a larger industry player or a secondary buyout to another private equity firm. The firm's thesis-driven investment approach and focus on lower-middle-market service businesses aligns well with the pest control sector's characteristics.

For Bio-Tech's employees and customers, the transition to PestCo ownership should prove relatively seamless. Successful pest control acquisitions typically retain local management, preserve brand identity in the near term, and maintain service quality while gradually integrating back-office functions. The founders' confidence in PestCo's stewardship suggests they conducted thorough diligence on cultural fit and operational philosophy.

The broader pest control industry will continue its transformation from a fragmented collection of family businesses into a more consolidated sector dominated by well-capitalized platforms. This evolution mirrors patterns observed in other local service industries including HVAC, plumbing, electrical contracting, and landscaping—all of which have experienced private equity-driven consolidation over the past two decades.

As PestCo digests the Bio-Tech acquisition and integrates the Houston operations, the platform will likely continue scanning for additional opportunities in Texas and beyond. With ten companies acquired since formation in November 2021, the pace of deal activity suggests an ambitious growth agenda backed by Thompson Street Capital Partners' resources and industry expertise.

For now, the Bio-Tech deal adds another data point to the ongoing consolidation narrative—a story of entrepreneurial succession, private equity capital deployment, and the steady professionalization of an industry that remains essential regardless of economic conditions. In the unglamorous but profitable world of pest control, the only certainty is that the deals will keep coming, much like the pests themselves.