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CD&R to acquire ServiceMaster for $5.5bn19/03/2007. Source: AltAssets. 
 An investment group led by Clayton, Dubilier & Rice has agreed to acquire The ServiceMaster Company for $5.5bn, including the assumption of debt.
Under the terms of the agreement, ServiceMaster's stockholders will receive $15.625 in cash for each outstanding ServiceMaster share. This represents a premium of approximately 16 per cent over ServiceMaster's closing share price of $13.47 on 16 March 2007 and a premium of approximately 31 per cent over ServiceMaster's closing share price of $11.90 on 27 November 2006, the last trading day before the announcement by the company that the board of directors would explore strategic alternatives, the firm said in a statement.
The ServiceMaster board of directors has approved the merger agreement and recommended it to stockholders.
Donald J Gogel, CEO of CD&R, said, 'We have been interested in ServiceMaster for years, and have always felt that its management team, unique mix of market leading brands and leading industry positions were a great fit with CD&R's investment approach. We believe the company will be better positioned as a non-public enterprise to pursue management's long-term growth plans and to further enhance its attractive collection of market-leading service businesses.'
ServiceMaster currently serves residential and commercial customers through a network of over 5,500 company-owned and franchised locations. The company's brands include TruGreen, TruGreen LandCare, Terminix, American Home Shield, InStar Services Group, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec.
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