Rentokil shares soar as investor Nelson Peltz takes 10% stake in pest firm

Staff
By Staff

Peltz’s investment firm, Trian Partners, has accumulated a substantial stake in Rentokil, placing it among the top 10 shareholders in the company

Shares in pest control company Rentokil have soared after renowned activist investor Nelson Peltz increased his stake, aiming to influence the future of the UK business.

Rentokil’s share price surged by up to 16% on Wednesday as investors poured money into the FTSE 100-listed company. Peltz’s investment firm, Trian Partners, has accumulated a substantial stake in Rentokil, placing it among the top 10 shareholders in the company, as initially reported by Bloomberg News.

Trian confirmed that it had “reached out to Rentokil to discuss ideas and initiatives to improve shareholder value”, adding: “Trian looks forward to working with Rentokil’s leadership team.”

This news provided a lift to Rentokil, which has seen its share price decline over the past year. The company, which owns former US competitor Terminix, is a global leader in the pest control industry, hygiene and wellbeing sector.

Billionaire investor Peltz sits on the board of Unilever and American restaurant chain Wendy’s, and has previously served as a director of major companies including Heinz, Mondelez, and Proctor & Gamble. His firm, Trian, had recently been lobbying US entertainment colossus Disney for seats on the company’s board, efforts which were rejected by its shareholders who backed its chief executive.

Mr Peltz’s family have also gained recognition in their own right, with his daughter, Nicola, an actress who is married to Brooklyn Beckham, the eldest son of former footballer David Beckham. Industry insiders have suggested that the increased stake could indicate impending changes for Rentokil, given Mr Peltz’s track record of spearheading turnaround campaigns at the companies he has been involved with.

Russ Mould, investment director at AJ Bell, commented: “Having failed to catch a mouse at Disney, Nelson Peltz is now chasing rats at Rentokil. Now a top 10 shareholder in the firm, Peltz is likely to pursue a big shake-up of a company which has struggled in comparison with its US peer Rollins, both in share price terms and financial performance.”

“Given Rentokil does a large chunk of its business across the Atlantic, this could include a push to shift its primary listing to the US, which would be another blow to the prestige of London as a listing venue.”

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *