Tuesday, March 20, 2007

The Sale of ServiceMaster

According to bizjournals the deal for ServiceMaster was for $4.5 billion, however I think the buyer agreed to take over the ServiceMaster debt as I understand it, which would put the deal at about $5.5 billion. The article is located here. Take a look.

After Hours: 15.13 -0.02 / -0.13% Vol. 3,100
Previous Close 15.15 Bid NA
Open NA Bid Size NA
High NA Ask NA
Low NA Ask Size NA
Volume 25,500 52 Week Range 9.66-15.20

Here is what the buyer said, according to bizjournals.

"To us, ServiceMaster is the perfect private equity holding," Sam Darkatsh, an analyst with Raymond James & Associates Inc., wrote in a research note Monday. "Huge, low-risk cash flows, the ability to roll up a fragmented industry and/or sell existing business lines, no Asian import or technological obsolescence risk, terrific brand names, and large (read: deep-pocketed) strategic players who could ultimately present an end game (or IPO, of course)."

1 comment:

Anonymous said...

Hey Andy,

Looking too relaxed out there. Need to head back to Memphis. Great to "see" you. Take care and God Bless.

Greg