(Reuters) -Rentokil Initial CEO Andy Ransom will retire by next year, the British pest control firm said on Wednesday, after 12 years during which he oversaw a $6.7 billion acquisition and confronted challenges in North America, its largest market.
Shares in the company fell 2.7% in early trading.
Ransom succeeded Alan Brown as CEO in 2013, after the latter stepped down following the failed turnaround of a loss-making acquisition, City Link.
Since then, he has guided the company through a $6.7 billion acquisition of U.S. rival Terminix, although integrating the new business has been a struggle amid weak demand in North America, which made up about 60% of Rentokil’s revenue last year.
Rentokil shares have more than tripled in value since his appointment, hitting a record high of 663.8 pence in July 2023.
“We view the announcement of succession planning as removing
a potential overhang for Rentokil,” Jefferies analysts said in a note, citing continued concerns in North America, the delay in integrating Terminix, and increased investor scrutiny.
Chairman Richard Solomons is leading the search for a new CEO, which is underway, the company said.
(Reporting by Yamini Kalia in Bengaluru; Editing by Nivedita Bhattacharjee and Rachna Uppal)
