- ServiceMasters enters agreement to sell SMB for $1.533 billion
- Upon consummation of the transaction, ServiceMaster will change its name to Terminix
ServiceMaster today announced that it has entered into an agreement with Roark Capital to sell ServiceMaster Brands for $1.533 billion. Upon consummation of the transaction, which is expected in the next 30 to 60 days, ServiceMaster Global Holdings will change its name to Terminix.
Earlier this year, we published a Commentary estimating that SERV should clear “over ~$1.0 billion in net proceeds for the SMB business” and today ServceMaster announced that the “Company expects net proceeds of over $1.1 billion from the divestiture after paying approximately $420 million in taxes”
“This transaction represents a tremendous outcome for the stakeholders of both of our businesses,” said ServiceMaster Chairman and interim CEO Naren Gursahaney. “Through this divestiture, Terminix will become a pure-play, global pest control company, better positioned for the future. We look forward to continuing to advance our commitment to predictable, sustainable growth and profitability at Terminix through the cultural and operational transformation of the business that is underway and remain focused on driving enhanced value for our shareholders, customers and employees.”
We expect that this divestiture will ultimately bring ServiceMaster back to their chair at the pest control M&A table.