ServiceMaster Global Holdings (SERV) to Outline Strategy for Future Growth

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.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• MGIC Investment (MTG) Announces $750M Share Buyback, Declares $0.115 Dividend
• Masonite (DOOR) Shareholders Approve Transaction with Owens Corning (OC)