Bath-based advanced engineering group Rotork has ended its six-month search for a new chief executive by appointing the CEO of US telecoms and engineering consulting firm FDH Velocitel to the post.
Kevin Hostetler, pictured, will join the group on February 12 and assume the role of chief executive from March 12, Rotork said in a statement to the London Stock Exchange.
Martin Lamb, who has been acting as executive chairman since previous chief executive Peter France unexpectedly quit last July, will then revert to his role of non-executive chairman.
Rotork, a world-leader in the design and manufacture of specialist valves for the oil and gas industry and Bath’s largest manufacturing company, said in its statement that Mr Hostetler had “accomplished significant results in substantial international businesses with a strong technology foundation”.
Prior to his three years at US-based FDH Velocitel, he was an executive advisor to private equity firms, a senior executive at IDEX Corporation, a $2.2bn US-based global flow control business, and held a number of leadership positions at Irish diversified industrial manufacturer Ingersoll Rand.
Mr Lamb said Kevin Hostetler had an “impressive track record of delivering profitable growth in a number of highly respected and innovative global engineering businesses, with significant experience in the flow control sector”.
He added: “He adopts leading-edge practices and processes honed at Ingersoll Rand, and has delivered transformational growth for shareholders at IDEX Corp, a flow control business with highly engineered products and strong customer service requirements serving similar end markets to Rotork.
“Kevin has recently concluded a successful exit after leading a three-year turnaround at FDH Velocitel, a private equity-backed telecoms business in the US, and will relocate from Chicago to Bath.”
Peter France’s shock departure from the chief executive role last July after nine years in the job and 28 years at Rotork triggered a 5% fall in its share price. It came as the firm announced a change in strategy to return to stronger growth and was, according to the group, through mutual agreement with its board.
The group has suffered from weak margins on its products as a result of the low oil price over the past few years and downturn in its key markets. While the fall in the pound’s value since the EU referendum has eased its problems, some analysts believe it could have done more to cut costs and enter new markets.
Rotork’s statement at the time of Mr France’s departure said the move followed a period of reflection by the board “on the steps required to foster a return to higher growth and margin levels in what is likely to be a generally lower growth macro environment”.
It said these steps included “accelerating investment in key areas such as product innovation and customer service whilst, at the same time, driving greater efficiencies throughout the business”.
Kevin Hostetler studied Materials Engineering/Polymer Science at Penn State University and completed his undergraduate studies at Kings College, Pennsylvania, graduating with a Bachelors in Corporate Finance. He also has an MBA in International Business from the Stern School of Business at New York University.
He said today: “I am honoured to have been selected to lead one of the world’s premier engineering solutions businesses. Rotork has an impressive track record founded on market-leading technologies, strong customer service and excellent people.
“I am excited by the opportunity to build on those firm foundations and lead Rotork through its next phase of development.”
As chief executive, Mr Hostetler will receive an annual salary of £600,000 and a pension allowance of 25% of base salary. He will also be eligible to participate in the annual bonus plan up to a maximum of 125% of base salary and the long-term incentive plan up to 150% of base salary.
Rotork will announce results for the year to December 31 on March 6.
