ServiceMaster Preparing for an IPO

MEMPHIS, Tenn. – The Memphis Business Journal reported March 26 that almost seven years ago to the day when Clayton, Dubilier & Rice, a private equity firm, acquired The ServiceMaster Co. for $5.5 billion, the company is preparing to launch an initial public offering. The MBJ reports ServiceMaster Global Holdings Inc., has filed a registration statement with the U.S. Securities and Exchange Commission, which is the first step in the IPO process.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are serving as joint book-running managers and as representatives of the underwriters for the offering.

While a date for the IPO hasn’t been set yet, ServiceMaster has been working through the process for years. It never stopped reporting quarterly earnings, and over the last two years, ServiceMaster began implementing changes to its primary brands, Terminix, American Home Shield, ServiceMaster Restore and ServiceMaster Clean that resulted in those brands increasing revenue, reported the MBJ.

This past Dec. 31, ServiceMaster cut ties with its billion-dollar lawn care division, TruGreen, which is now a separate private company.

ServiceMaster, which employs more than 2,300 locally and 20,000 company-wide, owns Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. It serves approximately 5 million residential and commercial customers.