Why Rentokil Stock Is Plunging Today
The British company that owns Terminix pest control warned of softening demand in North America, and investors are worried things could get worse from here. Shares of Rentokil Initial (NYSE: RTO) fell as much as 20% on Thursday morning due to what the company called "challenging" macroeconomic conditions.
Rentokil is a global bug buster, operating in 90 countries offering not just pest control but also cleaning and sanitizing services as well. Last year, the company acquired Terminix Global Holdings for $6.7 billion, and North America now accounts for almost half of total sales.
It appears that the acquisition might not pay off as quickly as management had hoped. Rentokil reported overall North America revenue up 2.2% in the third quarter but said its U.S. products wholesale distribution business was down 2.5% due to lower demand for chemical products.
Source Fool.com
