Secret Site Map
Sunday, December 21, 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

Alpha Ecological Participates in Downtown Boulder’s Lights of December Parade

The parade featured floats from various local businesses, churches, and civic centers in the Boulder area.

Malden High Schools Collaborate with Yankee Pest Control in Mural Contest

Students from Walden, Mass., area high schools painted murals on the backside of Yankee Pest Control's building for a competition. Yankee generously paid for all of the paint supplies and tarps, and provided pizza and refreshments to all of the students each time they were on site.

PCT Announces Winner of 13th Annual Photo Contest

Mark VanderWerp, manager of education and training at Rose Pest Solutions, takes home top honors with his photo of a jumping spider perched on a “succulent” plant.

El Paso Truly Nolen Acquires Fox Pest Control

Truly Nolen expands its Texas footprint with the acquistion of Fox Pest Control, a well established company.

Florida PCO to Provide Three Free Bed Bug Jobs for Christmas

This Christmas season Keller's Pest Control, Bradenton, Fla., will reward three needy families free bed bug treatments, the Bradenton Herald reported.

x