Rentokil Hires ICI Team in Fight for Recovery
Pest control to parcel delivery firm Rentokil Initial is parachuting in the management team that turned around chemicals group ICI in a bid to recover from two profit warnings that have hammered its shares.
Rentokil, which offers a range of services to businesses and consumers, said on Thursday that chief executive Doug Flynn was leaving with immediate effect, following chairman Brian McGowan who announced his resignation last month.
John McAdam, chief executive of ICI before its purchase by Dutch rival Akzo Nobel, will become chairman, while Alan Brown, former ICI finance chief, becomes chief executive.
Andy Ransom, another former ICI executive, will be responsible for corporate development.
"John, Alan and Andy's track records speak for themselves," Peter Long, Rentokil's senior independent director, said in a statement.
"I am in no doubt that their proven skills, in particular the operational and strategic rigor which they applied so successfully to the remarkable turnaround at ICI will be brought to bear, alongside those of the existing Rentokil Initial team, on the many and complex issues facing the group."
Rentokil, whose services also include cleaning, workwear and tropical plants, said last month that profits this year would fall well below 2007 levels due to weak trading and management failings at its City Link parcel delivery business.
This came just two months after an earlier profit warning and led to calls for a sale or break up of the group.
Rentokil shares, which have halved in value since December, closed at 72.8 pence on Wednesday, valuing the business at about 1.3 billion pounds.