Roark Capital Group entered into a purchase agreement to acquire ServiceMaster Brands business of ServiceMaster Global Holdings, Inc. (NYSE:SERV) for $1.6 billion on September 1, 2020. The purchase price is subject to certain adjustments for indebtedness, cash and working capital of the business at the closing of the transaction. ServiceMaster Brands includes a portfolio of residential and commercial services brands such as ServiceMaster Restore, ServiceMaster Clean, Merry Maids, AmeriSpec, and Furniture Medic, which operate through a network of franchised and company-owned businesses. Roark Capital Group entered into a debt financing committed and equity commitment letter to fund the purchase price. Upon completion, ServiceMaster Global Holdings will change its name to Terminix at closing. In case of termination, ServiceMaster Global Holdings, Inc. will be entitled to receive a termination fee of $97 million.

For the twelve-month period ended June 30, 2020, ServiceMaster Brands Franchise business generated $256 million in revenue. The transaction is subject to the expiration or early termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act, customary legal and regulatory closing conditions. As of September 16, 2020 FTC granted early termination notice. The transaction is expected to close in approximately 30 to 60 days. ServiceMaster Global Holdings, Inc. ServiceMaster Global Holdings, Inc. will use the proceeds from the transaction for reduction of debt to achieve its target leverage ratio of between 2.5 and 3 times adjusted EBITDA, continued investment in its core pest control and termite businesses to drive organic growth and productivity, accretive acquisitions to further strengthen its businesses, and continued ongoing returns to shareholders. Lazard served as financial advisor while Wachtell, Lipton, Rosen & Katz served as legal advisor to ServiceMaster Global Holdings, Inc. J.P. Morgan served as financial advisor while Jeffrey D. Marell, Sarah Stasny, Jordan Yarett, Robert Zochowski, Monica Thurmond,  Suhan Shim, Scott Sontag, Lawrence Witdorchic, Claudine Meredith-Goujon, Yuni Sobel, Marta Kelly and Adam Bernstein of Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisors to Roark Capital Group. Barclays provided financing for the transaction.

On September 15, 2020, ServiceMaster Global Holdings, Inc. announced that the company will change its name to Terminix Global Holdings, Inc., and change its NYSE ticker symbol to ‘TMX', immediately upon the closing of the transaction. Tim Wright of DLA Piper UK LLP acted as a legal advisor to Roark Capital Group.

Roark Capital Group completed the acquisition of ServiceMaster Brands Businesses of ServiceMaster Global Holdings, Inc. (NYSE:SERV) for $1.5 billion on October 1, 2020. In connection with the investment, Elane Stock will assume the role of Chief Executive Officer at ServiceMaster Brands. After taxes and fees related to the sale, net proceeds of approximately $1.1 billion will be used to retire approximately $800 million of debt, including a portion of the Term Loan B and all of the existing 2024 high yield bonds. Excess cash to the balance sheet of approximately $300 million will be earmarked for accretive M&A opportunities as well as opportunistic shareholder returns under a new $400 million share repurchase authorization. The name of ServiceMaster Global Holdings Inc., will change to Terminix Global Holdings, Inc., and its common stock will begin trading under the NYSE ticker symbol ‘TMX' on October 5, 2020. In conjunction with the name and NYSE ticker change, the associated CUSIP number will change to 88087E100.