Nelson Peltz's Trian has a stake in Rentokil. Here's how the activist might boost shareholder value

Core Insights - Rentokil Initial, a UK-based global provider of pest control and hygiene services, has seen its stock decline 36% from 2021 highs, attracting the attention of activist investor Nelson Peltz and Trian Partners, who aim to enhance shareholder value [2][5] - The company has faced challenges integrating its $6.7 billion acquisition of Terminix, leading to a warning of weakness in the U.S. market and a subsequent 18% drop in share price [7][8] - Rentokil generates approximately 60% of its £5.3 billion revenue from North America, with its core pest control segment accounting for 80% of total revenue [8][9] Company Overview - Rentokil Initial operates globally, providing pest control, hygiene, and well-being services, with a comprehensive range of pest control solutions and hygiene products [1] - The company has a significant market share in pest control and has delivered a total return of 932% from 2011 to 2021, outperforming the UK FTSE 100 and S&P 500 [7] Activist Engagement - Trian Partners has a history of successfully engaging with UK companies to create shareholder value, having achieved an average return of 32.01% in previous campaigns compared to 9.79% for the MSCI EAFE Index [2][4] - Trian's strategy involves operational activism, focusing on enhancing earnings by optimizing management and shedding non-core businesses [4] Strategic Initiatives - Trian is expected to work collaboratively with Rentokil's management to improve value, potentially seeking board representation [3][5] - A shift of Rentokil's primary listing to the U.S. is considered a viable strategy to close the valuation gap, as the company currently trades at a discount compared to U.S. peers [9]