ServiceMaster Global Holdings, Inc. (NYSE: SERV), a leading provider of
essential residential and commercial services, today announced that it
successfully completed the spin-off of frontdoor, inc., (“Frontdoor”),
the parent company of its American Home Shield business, which is now an
independent public company that will begin “regular way” trading this
morning on Nasdaq under the symbol “FTDR.” ServiceMaster shares will
continue to trade on the NYSE under the symbol “SERV.”
The spin-off enables ServiceMaster to focus on its transformation
efforts and on delivering an array of residential and commercial
services ranging from pest control and janitorial cleaning to
restoration services, through more than 8,000 owned, licensed, and
franchised locations across its seven brands, which operate in more than
22 countries.
“Today’s announcement is a major milestone for our employees,
shareholders and business,” said Nik Varty, chief executive officer of
ServiceMaster. “ServiceMaster begins its next chapter with strong
momentum and compelling growth prospects. We are committed to delivering
best-in-class services, and to continuing the transformation efforts in
our key Terminix business by focusing on our mission of helping
maintain, improve, and protect our customers’ most important assets –
their homes and businesses.”
“Operating as two powerful, independent, focused companies,
ServiceMaster and Frontdoor can now each benefit from increased focus
and flexibility to better serve customers, drive organic growth, and
unlock significant long-term value for shareholders. I’m excited for the
opportunities that lie ahead for both companies.”
In the last year, ServiceMaster has made significant progress in
strengthening and repositioning its Terminix business by putting in
place a strong leadership team, reinforcing accountability, empowering
technicians to deliver an excellent customer experience, and working to
implement a lean, Six Sigma approach. The company has also embarked on a
journey to build a strong commercial pest control business, including
the successful acquisition in of Copesan Services, and is implementing a
renewed growth strategy for its Franchise Services Group.
The separation was completed through a pro rata dividend of Frontdoor
common stock effective on October 1, 2018 to ServiceMaster shareholders
of record as of the close of business on September 14, 2018 (the “record
date”). Each ServiceMaster shareholder as of the record date received
one share of Frontdoor common stock for every two shares of
ServiceMaster common stock held by such shareholder on the record date.
Shareholders will receive cash in lieu of any fractional shares that
they would otherwise have received in the distribution.
ServiceMaster shareholders own more than 80 percent of the outstanding
shares of Frontdoor common stock.
J.P. Morgan served as exclusive financial advisor to ServiceMaster and
Wachtell, Lipton, Rosen & Katz served as legal advisor.
About ServiceMaster
ServiceMaster Global Holdings, Inc. is a leading provider of essential
residential and commercial services, operating through an extensive
service network of more than 8,000 company-owned locations and franchise
and license agreements. The company’s portfolio of well-recognized
brands includes AmeriSpec (home inspections), Furniture Medic (cabinet
and furniture repair), Merry Maids (residential cleaning), ServiceMaster
Clean (janitorial), ServiceMaster Restore (disaster restoration),
Terminix (termite and pest control), and Terminix Commercial (commercial
termite and pest control). The company is headquartered in Memphis,
Tenn. Go to servicemaster.com for more information about ServiceMaster
or follow the company at twitter.com/ServiceMaster or
Facebook.com/ServiceMaster.
Information Regarding Forward-Looking Statements
This press release contains forward-looking statements and cautionary
statements, including statements with respect to the separation of
Frontdoor from ServiceMaster and the distribution of Frontdoor shares to
ServiceMaster shareholders. Forward-looking statements can be identified
by the use of forward-looking terms such as “believes,” “expects,”
“may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,”
“projects,” “is optimistic,” “intends,” “plans,” “estimates,”
“anticipates” or other comparable terms. Forward-looking statements are
subject to known and unknown risks and uncertainties, many of which may
be beyond ServiceMaster’s control, including, without limitation, the
risks and uncertainties discussed in the “Risk Factors” and “Information
Regarding Forward-Looking Statements” sections in ServiceMaster’s
reports filed with the U.S. Securities and Exchange Commission. Such
risks, uncertainties and changes in circumstances include, but are not
limited to: the results and impact of the spin-off, the expected tax
treatment of the spin-off, the incurrence of significant transaction
costs, the impact of the spin-off on the businesses of ServiceMaster and
Frontdoor, and the failure to achieve anticipated benefits of the
spin-off. ServiceMaster cautions investors that forward-looking
statements are not guarantees of future performance or outcomes and that
actual performance and outcomes, including, without limitation,
ServiceMaster’s actual results of operations, financial condition and
liquidity, and the development of the market segments in which
ServiceMaster operates, may differ materially from those made in or
suggested by the forward-looking statements contained in this press
release.
Additional factors that could cause actual results and outcomes to
differ from those reflected in forward-looking statements include,
without limitation, lawsuits, enforcement actions and other claims by
third parties or governmental authorities; compliance with, or violation
of environmental health and safety laws and regulations; the effects of
ServiceMaster’s substantial indebtedness; changes in interest rates,
because a significant portion of ServiceMaster’s indebtedness bears
interest at variable rates; weakening general economic conditions;
weather conditions and seasonality; the success of ServiceMaster’s
business strategies, and costs associated with restructuring
initiatives. ServiceMaster assumes no obligation to update the
information contained herein, which speaks only as of the date hereof.
For a discussion of some of the important factors that could cause
ServiceMaster’s results to differ materially from those expressed in, or
implied by, the forward-looking statements included in this press
release, investors should refer to the disclosure contained under the
heading “Risk Factors” in ServiceMaster’s reports filed with the U.S.
Securities and Exchange Commission.
ServiceMaster Global Holdings, Inc.
Investor Relations:
Jesse Jenkins, 901-597-8259
Jesse.Jenkins@servicemaster.com
or
Media:
James Robinson, 901-597-7521
James.Robinson@servicemaster.com