Travis Perkins PLC (LON:TPK) chief executive John Carter is to step down as chief executive of the builders merchant in August after five years in charge.
Carter will be replaced by Nick Roberts, currently chief executive of Atkins, the engineering and project management consultancy formerly called WS Atkins.
READ: Travis Perkins leaps as Wickes steadies and plumbing sale gets nearer
He will remain at the company until the end of 2019 to ensure a smooth handover.
Chairman Stuart Chambers said: “John has given over 40 years of dedicated service to Travis Perkins, serving as a director for 18 years and as CEO for the last 5 years, substantially improving the business during his tenure as CEO.
“He has led the group through periods of major change and demonstrated strong leadership during a period of significant investment and considerable market uncertainty.”
Travis Perkins restructuring
Carter has led a restructuring of the company that aims to simplify its structure, reduce costs and focus on more profitable businesses.
As part of the strategy, Travis Perkins plans to sell its plumbing and heading business and has hinted at the possible disposal of the Wickes home improvement business.
“John will leave as his legacy a strong trade focused business of great integrity with well-established inclusive values and an accomplished management team which is well-placed to deliver the group's strategy,” said Chambers.
Shares were little changed in morning trading at 1,365p.
Roberts 'not the obvious hire', says Liberum
Liberum maintained a 'buy rating and target price fo 1,450p.
The broker said Carter's departure had already been well flagged in the annual report and is surprising only perhaps in the timing - giving a long lead time to the change.
"Travis Perkins has been run by outsiders before with some success (most of Geoff Cooper's time in charge went well)," Liberum said.
"This does not look to us like the most obvious hire, but the Board carried out a 'rigorous and wide-ranging process'."