ServiceMaster agrees to termination fee |
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Wed, 21 Mar 2007 17:52
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WASHINGTON (AP) - ServiceMaster Co. and investors seeking to buy the lawn care and pest control provider agreed to a $100 million fee if a $4.5 billion deal collapses.Under the proposed deal, which was announced Monday, ServiceMaster stockholders would receive $15.625 in cash for each outstanding share from an investor group led by private equity firm Clayton, Dubilier & Rice Inc. That group also would assume about $1.02 billion in debt.According to a filing Tuesday with the Securities and Exchange Commission, ServiceMaster and the Clayton group signed a definitive agreement whereby ServiceMaster will have to pay the private equity firm a $100 million termination fee under certain specified conditions.Alternately, if the investment group and its subsidiary fail to get financing for the deal then they would have to pay $100 million to Downers Grove, Ill.-based ServiceMaster, the filing said.ServiceMaster was pressured by shareholders to consider a sale or buyout after years of declining financial performance.The company is closing its Illinois headquarters and moving operations to Memphis, Tenn., where many of its subsidiaries are located. The move is expected to be complete by November.Shares of ServiceMaster added 6 cents to $15.27 in midday trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Group buying ServiceMaster in $5.5B deal 