New Rentokil boss to push non-core sell-offs
A changing of the guard at Rentokil Initial will see the listed firm focusing on its core divisions of pest control, cleaning and laundry service, resulting in opportunities for private equity.
Rentokil's CEO Alan Brown is to step down and will be replaced by current executive director Andy Ransom.
According to the Financial Times, Ransom's key task in the new role will be to offload the company's low-margin, UK facilities management business, Initial Facilities Services.
In early-June, it was reported that Clayton Dubilier & Rice was in talks with Rentokil to buy its office maintenance business, in a deal that could see it combined with the facilities arm of Balfour Beatty.
The facilities management division of Rentokil is believed to be worth up to £400m.
The sell-off would follow Rentokil's recent disposal of loss-making courier business City Link to Better Capital for a nominal £1.
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