ServiceMaster Global Holdings Sells ServiceMaster Brands
MEMPHIS, Tenn.—September 2, 2020—ServiceMaster Global Holdings, parent company to ServiceMaster Restore, Terminix, Merry Maids, ServiceMaster Clean, and others, today announced it had entered an agreement to sell all its ServiceMaster Brands to an affiliate of Roark Capital. The $1.553 billion transaction will close in 30-60, provided all customary legal and regulatory closing conditions go as expected, according to Business Wire.
The transaction is expected to position the company’s two businesses, Terminix and ServiceMaster Brands, to pursue their own distinct strategies and growth opportunities, with Terminix benefiting from enhanced management focus and resources for its global pest control business, while Roark Capital will provide ServiceMaster Brands with a strong and supportive owner to build upon its leading market positions and trusted brand names.
ServiceMaster Brands includes a portfolio that operates through a network of franchised and company-owned businesses that generated $2.663 billion in system-wide sales and $256 million in revenue for the twelve-month period that ended June 30, 2020.
“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.”
Gursahaney added, “ServiceMaster Brands is the largest franchisor in commercial and residential services with over $2.6B in system-wide sales in the large and growing restoration and health-based cleaning services industries. With a resilient market position, trusted brand names, and exciting new growth strategies, the business and its experienced teams and franchisees are well-positioned for strong long-term growth. Roark Capital has a strong track record of supporting franchisees and dedicating substantial resources to growing need-based services businesses, and we are confident that ServiceMaster Brands has a bright future ahead.”
“We are thrilled to welcome ServiceMaster Brands to our family,” said Mike Thompson, managing director at Roark Capital. “We are excited to partner with the team and support ServiceMaster Brands’ long-tenured and successful franchisees to realize the tremendous growth potential of these brands.”
The potential sell was first reported in January.