CD&R To Buy ServiceMaster for $5.5 Billion

Clayton Dubilier & Rice has agreed to acquire The ServiceMaster Co. (NYSE: SVM) for approximately $5.5 billion (including the assumption of debt). Under terms of the deal, ServiceMaster shareholders would receive $15.625 per share, which is around a 16% premium over Friday’s closing price of $13.47 per share. Banc of America Capital Investments, Citigroup Private Equity and JPMorgan Chase have committed to provide equity financing, while leverage will come from Banc of America Securities, Citigroup Global Markets and JPMorgan. Morgan Stanley and Goldman Sachs served as financial advisors to ServiceMaster, which provides residential and commercial customers with such services as lawn care and landscape maintenance, termite and pest control, home warranties, disaster response and reconstruction, cleaning and disaster restoration, house cleaning, furniture repair and home inspection.