Alpha Ecological aims for green growth

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Alpha Ecological CEO Scott Sneer

Alpha Ecological is gobbling up competitors in an effort to become a force in the $6.3 billion U.S. pest control industry.

And one of it’s biggest weapons is a cute, smiling cartoon frog named Seymour.

The Vancouver, Wash.-based environmentally friendly pest control company is on track to reach $20 million in revenue this year, a more than 20 percent growth rate it hopes to achieve by continuing a recent acquisition binge.

In the past year, Alpha Ecological — which employs around 150 in its busiest season — has acquired three smaller competitors: Cascade Pest Control of McMinnville in February, Ideal Pest Control of Phoenix in May and Bug Busters of Tucson, Ariz., in November.

CEO Scott Sneer said he’s evaluating at least two dozen other acquisition targets, at least five of which have advanced beyond casual conversations. Any deals would be self-financed, without outside investment, Sneer said.

Though Sneer envisions an eventual national expansion, the initial focus is to grow the company’s market share in the six states in which it operates: Oregon, Washington, Idaho, Colorado, Arizona and Texas.

That doesn’t preclude the company from opening new markets should the right opportunity arise.

“We could double in size,” Sneer said. “And we can handle it.”

While Alpha Ecological has been plotting its growth for years, the time appears right for growth-by-acquisition.

The U.S. pest control industry last year generated $6.3 billion in revenue, a 4.1 percent decline thanks largely to the weak housing market, according to data released last week by Specialty Products Consultants LLC.

“I’ve talked to a number of pest control operators who in years past have tried to make acquisitions and been told by the company they were trying to acquire they weren’t interested,” said Gary Curl, president of Speciality Products Consultants. “Now those companies are coming back saying, ‘remember a couple years ago you wanted to buy us? We’re interested now.’ It’s definitely that kind of market.”

Memphis-based The Terminix International Co. LP and Atlanta-based Orkin LLC dominate the national pest control industry. Each has revenue around $1 billion.

While a handful of others generate more than $100 million in annual revenue, the industry is known for an abundance of mom-and-pop players.

“Most companies are very small operations,” said Jodi Dorsch, editor of Pest Control Technology Magazine. “Our magazine goes to 23,000 people and a lot of those readers are (companies in which) the husband runs the route, the wife runs the office.”

The smaller operations tend to rely on recurring revenue from residential customers.

“As the economy is hit, people cut that regular service,” Dorsch said.

Alpha Ecological — founded and owned by Sneer’s in-laws, Jim and Linda Hargis — is looking to acquire the companies that fit that profile, especially if they have a robust customer base.

But acquisitions are just one cog in the company’s growth plans.

Sneer said he also hopes to boost the company’s commercial business, which now accounts for just 20 percent of revenue.

Alpha Ecological in recent weeks acquired a Portland carpet cleaning service. Sneer declined to disclose details of the transaction, but said the goal is to become a more complete home services business.

Perhaps the most critical element of the company’s growth plan is developing its brand.

That’s where the frog comes in.

Alpha Ecological in April began a radio and billboard campaign touting its eco-friendly approach to pest control, using the Disney-like frog, Seymour Green, as its messenger.

And that’s just the start. The company has Seymour mouse pads, Seymour magnets and little stuffed Seymours. The company’s website is Sayfrog.com.

“Within six weeks, I’ll say ‘pest control,’ and you’ll say, ‘frog.’” he said.

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