Rentokil hires US-based chief executive – sparking fears it could move to New York stock market

Rentokil has appointed a new CEO who will be based in the US, paving the way for a possible New York listing.

American Mike Duffy will replace Andy Ransom, who announced his retirement last year after 12 years in the top job, in March.

Rentokil will pin its hopes on Duffy, the current CEO of logistics company OnTrac, to improve its North American business, which has come under pressure in recent years.

Its acquisition of US rival Terminix was hailed as transformative, but integrating the new business has proved a struggle.

The chief executive of North America operations, Brad Paulsen, left the firm last year after it suffered weak demand in the face of competition from rival Rollins.

Duffy’s appointment signals Rentokil is doubling down on growth in North America, which accounts for more than half of revenues. Only around 30 per cent of sales come from the EU and UK.

‘The CEO being based out of America allows the firm to strategically align with the majority of its clientele and continue to grow in the region,’ said Ben Slupecki, equity analyst at Morningstar.

Duffy’s location strengthens the argument for a US stock listing if Rentokil can improve earnings there, said Dan Coatsworth, head of markets at AJ Bell.

In the third quarter, Rentokil said revenue in North America grew 4.6 per cent.

Coatsworth added: ‘Mike Duffy is probably better known among US investors than UK ones, and their experience in the country would suggest it’s going to be a key focus for growth opportunities.

‘It’s only natural to want to raise a company’s profile in the country by having a US stock listing.’

It would mark another high-profile departure from the London Stock Exchange, which has lost a slew of big names to takeovers and switching listings in recent years.

In 2024, Rentokil committed to improving growth in the US but said it would ‘continue to keep the group’s listing structure under review to ensure that the strength of the group’s underlying financial performance and its prospects are appropriately valued.’

Rentokil’s US-listed rival Rollins trades at more than twice Rentokil’s valuation.

Slupecki added: ‘It wouldn’t be surprising if Rentokil decide to make the US its primary listing, but to say it is likely may be a bit too strong. We will need to wait and see the strategy deployed by the new CEO before we can understand the firm’s new structural focus.’

Rentokil declined to comment.