Announces Acquisition of Assured Environments; Reaffirms Guidance for FY2018
MEMPHIS, Tenn.--(BUSINESS WIRE)--ServiceMaster Global Holdings, Inc. (NYSE: SERV), a leading provider of
residential and commercial pest control, restoration and cleaning
services, announced that CEO Nik Varty and other senior executives will
update the investment community on key elements of the company’s
refreshed growth strategy at ServiceMaster’s 2018 investor day meeting
beginning at approximately 12:30 p.m. ET today.
“We are ready to write a new chapter in ServiceMaster’s story,” said
Chief Executive Officer Nik Varty. “In 2018, we delivered on a major
commitment to our investors through the spin-off of American Home
Shield, and I am excited that the transformation of the Terminix
business is on-track and already driving significantly improved organic
growth. ServiceMaster is dedicated to creating cleaner, healthier, safer
environments for our customers wherever they are – at home, at work, or
at play – and the initiatives we took this year are improving the
customer experience and increasing Net Promoter Scores.
“We will continue to make the critical investments in our people and
technology needed to position the company for sustainable, profitable,
long-term growth. This includes our breakthrough partnership with
Salesforce and our investment in improving process capabilities. We are
also enhancing our training and employee pay structures and benefits,
and optimizing the number of service technicians to significantly
improve the service we provide to our customers. We are confident that
we will succeed by delivering outstanding customer experiences by
listening to our front-line employees and supporting them with leading
technology.”
In 2019, the company will continue to strengthen the ServiceMaster core
by further improving fundamentals, while unlocking several new avenues
for adjacent profitable growth. This work includes continuing the
Terminix transformation by expanding its capabilities and presence in
commercial and national accounts businesses and improving its termite
business, as well as capitalizing on significant growth opportunities in
the highly-complementary ServiceMaster Brands portfolio.
Assured Acquisition
ServiceMaster also announced today that it will acquire Assured
Environments, a leading commercial pest control company based in New
York City. The company is best known for providing effective pest
control services to property management, hospitality, retail, education
and food processing facilities and its leadership in urban pest
management. Assured provides pest control services to many of New York’s
best-known buildings, including Rockefeller Center, Madison Square
Garden, and the 9/11 Memorial Museum.
“Andrew Klein and the Assured team have an incredible reputation for
exceptional customer experiences in one of the key urban markets in the
world,” said Chief Executive Officer Nik Varty. “This acquisition is
well-aligned with our growth strategy, and we are excited about the
potential to leverage this great team and their capabilities as we look
to accelerate our expansion into exciting urban markets.”
Founded in 1934, Assured Environments has built a culture of excellent
customer service and employee satisfaction. The acquisition brings more
than 200 full-time employees and marquee clients into the Terminix
portfolio. Assured Environments will continue to operate as a separate
company and as a Copesan partner, servicing national accounts in the New
York area.
Full-Year 2018 Outlook
The company reaffirmed its full-year 2018 outlook previously provided in
its third-quarter 2018 earnings release on Nov. 6, 2018. The company
continues to expect full-year 2018 revenue to range between $1.885 and
$1.9 billion and Adjusted EBITDA to range between $425 and $435 million
with organic revenue growth at the Terminix segment between 1 and 2
percent for the full-year.
Renaming of Franchise Services Group
The business unit will be renamed ServiceMaster Brands to better align
with the company’s strategy to create value by leveraging size and scale
in the important restoration and cleaning categories, expanding into
adjacent specialty services, exploring selective ownership of specific
operations, and growing its commercial national accounts management.
Investor Day Presentation
ServiceMaster will host its Investor Day Presentation today beginning at
12:30 p.m. Eastern Time (9:30 a.m. Pacific Time) to discuss its
strategies for 2019 and beyond. The presentation will be webcast and a
replay will be available beginning on Wednesday, Dec. 12 for at least 90
days. More information, including the slides for the event, can be found
at investors.servicemaster.com/events-calendar.
About ServiceMaster
ServiceMaster Global Holdings, Inc. is a leading provider of termite and
pest control, cleaning and restoration services in both the residential
and commercial markets, 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), Copesan (commercial national accounts pest
management), 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 2018 revenue and Adjusted EBITDA outlook and
organic revenue growth projections. 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 our control, including, without limitation, the risks and
uncertainties discussed in the “Risk Factors” and “Information Regarding
Forward-Looking Statements” sections in the company’s reports filed with
the U.S. Securities and Exchange Commission. Such risks, uncertainties
and changes in circumstances include, but are not limited to: 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 our substantial
indebtedness; changes in interest rates, because a significant portion
of our indebtedness bears interest at variable rates; weakening general
economic conditions; weather conditions and seasonality; the success of
our business strategies, and costs associated with restructuring
initiatives. We caution you that forward-looking statements are not
guarantees of future performance or outcomes and that actual performance
and outcomes, including, without limitation, our actual results of
operations, financial condition and liquidity, and the development of
the market segments in which we operate, may differ materially from
those made in or suggested by the forward-looking statements contained
in this press release. The company assumes no obligation to update the
information contained herein, which speaks only as of the date hereof.
Investor Relations:
Jesse Jenkins
901.597.8259
Jesse.Jenkins@servicemaster.com
Media:
James Robinson
901.597.7521
James.Robinson@servicemaster.com