Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, October 13, 2017

Article Excerpt

SERVICEMASTER GLOBAL HOLDINGS INC., $47.15, symbol SERV on New York, provides residential and commercial services focused on termite and pest control, home warranties, disaster response and restoration, professional home cleaning, furniture repair, and home inspections. Its brands include Terminix, American Home Shield, ServiceMaster Clean, ServiceMaster Restore, Merry Maids, AmeriSpec and Furniture Medic. The company visits more than 75,000 homes and businesses each day. Based in Memphis, Tennessee, ServiceMaster now plans to spin off its American Home Shield business. It’s the largest home warranty company in the U.S. and provides contracts to cover the repair costs of home appliances and major systems such as heating and cooling. Its policies also cover plumbing, electrical and structural systems. American Home Shield has nearly two million customers across all 50 U.S states and a national network of roughly 14,000 pre-qualified contractors. ServiceMaster aims to spin off that business in the third quarter of fiscal 2018. The company’s been through that process before: In 2014, ServiceMaster spun…