01.10.2020, 14:50
ServiceMaster Completes US $1.5 Billion Disposal of Franchise Business
ServiceMaster Global Holdings has completed the sale of the ServiceMaster Brands franchise business to Roark Capital for US $1.553 billion, and confirmed it will rebrand as Terminix Global Holdings (NYSE Ticker symbol: TMX) on Monday, 5th October.
Commenting, CEO Brett Ponton, said: “Today marks the beginning of exciting new chapters for both Terminix and ServiceMaster Brands.”
“Terminix is moving ahead with a laser focus on being the preferred pest control company in the industry. We look forward to continuing to build on the progress underway to further enhance the customer experience that will drive consistent, profitable growth. We see tremendous potential to further capitalize on the powerful Terminix brand name, strong service culture, and significant scale to deliver greater value for all our stakeholders. Our talented team is energized and looks forward to forging even stronger connections with our customers and local communities.”
“With Roark Capital, the team at ServiceMaster Brands will have access to new opportunities to build upon their exceptional portfolio and trusted brand names, and we know they are destined to continue to achieve great things. We thank the team for their hard work in getting to this point, and we wish them well for the future.
ServiceMaster Chief Financial Officer, Tony DiLucente, added: “The transaction will deliver substantial financial benefits, allowing us to right-size our balance sheet below our long-term target net debt ratio of 2.5 to 3 times.
“Increasing the focus on consistent execution in the Terminix business as a pure-play company will allow us to make faster progress improving the fundamentals of customer service. Those improvements will drive higher customer retention and produce consistent organic growth, profit margin expansion and free cash flow generation. In addition, while we will have ample capacity to pursue strategic M&A opportunities, our focus in the near term will be on bolt-on deals as we work to realize synergies from previous deals closed over the last few years. Under our new $400 million share repurchase authorization, we will have considerable flexibility to be opportunistic as we remain focused on delivering returns for our shareholders.”
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