Rentokil Stock Surges as Nelson Peltz Hedge Fund Executive Joins Board

American depositary receipts (ADRs) of Rentokil Initial (RTO) gained Wednesday when the pest-control company announced that an executive from activist investor Nelson Peltz’s Trian Fund Management hedge fund was appointed to its board.

The British owner of brands such as Terminix and Western Exterminator reported that Brian Baldwin, Head of Research at Trian, would become a non-executive director starting Oct. 1.

Trian said it took “a significant position” in Rentokil in June, becoming a top 10 investor, and had reached out to the company “to discuss ideas and initiatives to improve shareholder value.” At the time, it was unclear what size the stake was, but today Rentokil reported the fund holds about 57.1 million shares, or 2.26% of shares outstanding. 

Trian Believes Rentokil ‘Has Significant Potential and Runway for Growth’

Baldwin noted that he welcomed the opportunity to join the board, adding that Trian believes Rentokil “has significant potential and runway for growth that can be achieved by leveraging its strong brands and market leading positions, particularly in the U.S.”

Rentokil ADRs had been up for much of 2024, but they plunged into negative territory earlier this month when it warned that weak North American sales and negative currency impacts would cut full-year profit by 80 million pounds ($104.5 million at the time). The ADRs remain down more than 10% year-to-date even after today’s 4% gain.