Secret Site Map
Saturday, July 26, 2014

Home News ServiceMaster PE Backer Gets TruGreen as Dividend

ServiceMaster PE Backer Gets TruGreen as Dividend

Business

ServiceMaster's handing off of its entire TruGreen business to private-equity owner Clayton, Dubilier & Rice is a rare occurrence, the Wall Street Journal reports.

| January 13, 2014

ServiceMaster’s handing off of its entire TruGreen business to private-equity owner Clayton, Dubilier & Rice is a rare occurrence, the Wall Street Journal reports.

The article notes that unlike the many private-equity-backed companies that have recently raised new debt or dipped into their coffers to pay their owners cash, ServiceMaster is giving up something else to its owners: a lawn-care business with $900 million in annual sales.

ServiceMaster is spinning off its TruGreen business, which accounts for about a third of its sales but has struggled recently, and giving it to private-equity owner Clayton, Dubilier & Rice LLC.

Private-equity-backed companies sold more than $130 billion worth of bonds and loans to fund payouts to their owners in 2012 and 2013 in back-to-back record-breaking years, according to Standard & Poor’s Capital IQ LCD data service. Rarely, however, do they hand over entire businesses.

“A dividend of the perhaps bottoming TruGreen business results in a smaller, less valuable ServiceMaster, a negative development as there is no planned debt reduction,” Moody’s Investors Service senior analyst Edmond DeForest said in a note to investors late last year. Moody’s is reviewing ServiceMaster’s credit for a possible downgrade because of the spinoff.

ServiceMaster says the pruning will clear its path to an initial public offering later this year and argues that the deal won’t affect its ability to pay down its debt.

Click here to read the entire article.

Source: WSJ

 

Top news

CRU Names Fugler Director of Risk Management

Allen Fugler is joining Capital Risk Underwriters, where he will work with CRU’s insured pest management professionals on regulatory compliance, employee training, file documentation and risk mitigation.

EPA Introduces New Graphic to Help Consumers Make Informed Choices about Insect Repellents

The new graphic that will be available to appear on insect repellent product labels.

Arrow Exterminators Acquires Alchemy Pest Control

Alchemy is based in Raleigh, N.C., and serves the greater Raleigh-Durham area and surrounding communities.

Cook’s Open House Showcases State-of-the-Art Training Facilities

Residential and commercial training centers provide hands-on educational opportunities in a “real-world” setting for technicians and sales personnel.

Canada's Bed Bug Problem Worsening, Experts Say

Bed bugs are multiplying in record numbers in cities and smaller communities across Canada, CTN News reports.