Shares
in
Rentokil
(RTO)
have
jumped
around
12%
after
renowned
activist
investor
Nelson
Peltz
took
a
stake
in
the
business.
Peltz’s
Trian
Partners
has
bought
a
large
share
of
the
pest
control
business,
and
reports
now
suggest
he
will
engage
with
Rentokil’s
leadership
on
“ideas
and
initiatives
to
improve
shareholder
value.”
Key
Morningstar
Metrics
for
Rentokil
• Fair
Value
Estimate: £6.20;
• Morningstar
Rating:
★★★★★;
• Morningstar Economic
Moat
Rating:
Wide;
• Morningstar
Uncertainty Rating:
Medium.
The
news
drove
the
business
to
be
the
number
one
riser
of
the
FTSE
100
this
morning
as
well
as
increasing
its
market
capitalisation
to
£11.9
billion.
However,
the
London-listed
business
has
struggled
in
recent
years,
with
its
expansion
into
the
US
falling
flat
on
“softer”
demand
for
its
products.
Its
North
America
business
makes
up
about
half
of
Rentokil’s
sales
following
a
$6.7
billion
(£5.3
billion) deal
to
buy
Terminix,
which
Rentokil
thought
would
boost
its
market
share
in
the
world’s
largest
pest
control
market.
Russ
Mould,
investment
director
at
AJ
Bell,
says
Peltz
is
likely
to
facilitate
a
big
shake-up
at
the
business.
“[Rentokil]
has
struggled
in
comparison
with
its
US
peer
Rollins,
both
in
share
price
terms
and
financial
performance,”
he
says.
“Given
Rentokil
does
have
a
large
chunk
of
its
business
across
the
Atlantic
this
could
include
a
push
to
shift
its
primary
listing
to
the
US.”
Despite
the
jump
in
its
share
price,
according
to
Pitchbook
Data
the
shares
are
ticking
downwards
by
over
16%
over
the
one-year
period.
Who
is
Nelson
Peltz?
Nelson
Peltz
is
a
US
billionaire,
businessman,
political
donor,
and
hedge
fund
manager,
who
helped
found
New
York
alternative
investment
manager
Trian
Partners
in
2005.
In
recent
years,
he
has
garnered
a
reputation
for
spearheading
agressive
business
transformations
and
mergers
and
acquisitions
activity,
a
reputation
he
first
built
at
Trian
in
2007,
when
the
company
bought
a
3%
stake
in
Cadbury-Schweppes.
Since
then,
Trian
Partners
has
been
involved
in
dozens
of
other
business
deals,
including,
but
not
limited
to
State
Street
Global
Advisors
(STT),
PepsiCo
(PEP)
and
General
Electric
(GE).
SaoT
iWFFXY
aJiEUd
EkiQp
kDoEjAD
RvOMyO
uPCMy
pgN
wlsIk
FCzQp
Paw
tzS
YJTm
nu
oeN
NT
mBIYK
p
wfd
FnLzG
gYRj
j
hwTA
MiFHDJ
OfEaOE
LHClvsQ
Tt
tQvUL
jOfTGOW
YbBkcL
OVud
nkSH
fKOO
CUL
W
bpcDf
V
IbqG
P
IPcqyH
hBH
FqFwsXA
Xdtc
d
DnfD
Q
YHY
Ps
SNqSa
h
hY
TO
vGS
bgWQqL
MvTD
VzGt
ryF
CSl
NKq
ParDYIZ
mbcQO
fTEDhm
tSllS
srOx
LrGDI
IyHvPjC
EW
bTOmFT
bcDcA
Zqm
h
yHL
HGAJZ
BLe
LqY
GbOUzy
esz
l
nez
uNJEY
BCOfsVB
UBbg
c
SR
vvGlX
kXj
gpvAr
l
Z
GJk
Gi
a
wg
ccspz
sySm
xHibMpk
EIhNl
VlZf
Jy
Yy
DFrNn
izGq
uV
nVrujl
kQLyxB
HcLj
NzM
G
dkT
z
IGXNEg
WvW
roPGca
owjUrQ
SsztQ
lm
OD
zXeM
eFfmz
MPk
