The company will be separated from ServiceMaster's portfolio by the end of the year.
ServiceMaster plans to spin TruGreen as a stand-alone company.
According to the company's third-quarter financial report, Rob Gillette, ServiceMaster's CEO said: "The company plans to separate the TruGreen business from the ServiceMaster portfolio on or about December 31, 2013. "This separation should enable ServiceMaster to concentrate on growth while providing TruGreen the time and focus it needs to make the changes necessary to complete the turnaround of its business. Separating TruGreen from ServiceMaster should allow both companies to realize their full potential faster."
The financial report went on to say:
The separation of the TruGreen business from ServiceMaster is being planned as a tax-free spin-off of TruGreen through a pro rata dividend to the stockholders of ServiceMaster Global Holdings, Inc., the ultimate parent company of ServiceMaster. The separation is subject to a number of important closing conditions, which once completed will result in TruGreen being an independent, private company. J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Natixis are acting as financial advisors to ServiceMaster in connection with the proposed separation.
"We believe the most effective way to realize TruGreen's long-term value is to have it operate as a standalone company," said TruGreen president David Alexander. "We have the right team and the right plan, and we're excited about the opportunity ahead of us. What we need to do now is stay focused, execute well and deliver more consistent, reliable performance over the long haul."
ServiceMaster had third-quatrter operating revenue of $929 million, an increase of approximately 3 percent compared to the same period in 2012. The increase in revenue was primarily attributable to a strong performance at Terminix versus the prior year period and revenue stabilization at TruGreen.
The company reported third-quarter 2013 net income of $46 million. This compares to a net loss of $704 million one year ago, which included goodwill and trade name impairment charges at TruGreen totaling $845 million. The company reported third-quarter 2013 Operating Performance of $169 million, which was comparable to the same period in 2012. The impact of higher revenue on gross profit in third-quarter 2013 was offset by higher selling expenses, primarily at TruGreen.
“Our third-quarter 2013 financial results met our expectations,” Gillette said. “While the increase in revenue compared to the third quarter of 2012 was primarily attributable to the strong performance at Terminix, all of our business segments produced revenue growth versus prior year.”
“We’ve talked a lot over the past few months about the TruGreen turnaround, and it has now become clear that while we’re making progress,” said Gillette, “TruGreen is on a different earnings growth timeline than the rest of ServiceMaster.”
Alexander pointed out that TruGreen has made steady progress over the past several months implementing process and technology improvements that should stabilize its operations and deliver better results.
With the acquisition of Finch Tree Surgery, Bartlett now has an operation in Los Angeles.
STAMFORD, Conn. – Bartlett Tree Experts has expanded its presence in California to include the Los Angeles metro area with the recent acquisition of Finch Tree Surgery. Located in San Gabriel, this is Bartlett’s seventh operation in the state, where they also have offices in the Bay Area and Santa Barbara.
“Finch Tree is known for exceptional pruning work. The staff is meticulous about adhering to our industry standards and best practices, and it shows. In addition to entering a new market, this acquisition has been an opportunity to add some very talented professionals to our team,” said James Ingram, president of Bartlett Tree Experts.
Fred Finch worked in tree care for more than 20 years before he founded Finch Tree in 1968, and quality workmanship was a priority from the beginning. His son, Randy Finch, carried on that tradition for 33 years as a consulting arborist and owner of the business before making his recent decision to retire..
Finch’s former president, Daniel Goyette, is staying on to manage the San Gabriel operation for Bartlett Tree Experts. A certified arborist and tree safety professional, Goyette has been with the company for seven years. The office’s other team members will remain the same as well, providing a smooth transition for all involved, including clients.
“Moving into a new service area through an acquisition requires a lot of trust,” Ingram comments. “We look for businesses with strong cultures of high quality work, safety, and customer service. That’s what we found with Finch.”
Ferrandino & Son has hired facility maintenance veteran Dave Magill.
Farmingdale, NY -- Ferrandino & Son, Inc., the National Leader in Snow Removal, Landscaping, Exterior Maintenance; Facility Service and Maintenance; General Contracting and HVAC, announced today it has hired Dave Magill as Vice President of Program Management. Dave Magill brings over 28 years of Facility Services experience in both snow removal and landscaping, and will complement Ferrandino & Son, Inc., and the industry, with his high level of professionalism and deep commitment to creating “Best in Class” solutions for each client. “Professionally, this was an unparalleled opportunity to join, and play an integral role within an organization that has a tremendous vision of the retail facilities maintenance industry and a passion to service their clients at the highest levels," says Magill. According to Kevin Smith, Chief Operating Officer, “With his background in both sales and operations he was the perfect candidate to leverage real-world experience with real-world solutions; assisting them in building better, more sustainable service programs”. Magill’s priorities will be to focus on service program development, engaging clients in workshops and strategy sessions along with maximizing one-on-one customer meetings to support their “Best in Class” vision. “I believe that Dave will heighten the direction of this company, with a continued focus on education, sustainable programs and a Best in Class operational solution," says Peter Ferrandino, CEO and president of Ferrandino & Son, Inc. “Adding strength to an already Industry-Best Management Team was an easy decision and one we are excited to see play out in the years to come”. To learn more about Ferrandino & Son, please call 866-571-4609, send an email to abruu@ferrandinoandson.com
Jack Jones will now oversee Ruppert Landscape's branches in North Carolina and Georgia.
Laytonsville, MD – Ruppert Landscape is pleased to announce the promotion of Jack Jones to the position of Region Manager where he will oversee branches in Raleigh, NC, Charlotte, NC and Atlanta, GA. In this role, Jones will help maximize the division’s capabilities in people development, customer service and profitability. “Jack is a charismatic leader and challenges people to be their best,” says President Phil Key. “He has been actively involved with strategic planning for the division even before his promotion and has created many initiatives that have been adopted division-wide. We are excited about giving him the opportunity to play an even bigger role here at Ruppert and are looking forward to many good things from him.” Jones, who has been with the Ruppert organization for eight years, brings over 12 years of industry experience including positions as a sales manager, production manager and project manager. Jones honed his very valuable training and people development skills while serving nine years in the U.S. Marine Corps with increasing levels of responsibility that included drill instructor, senior drill instructor and scheduling chief. In 2010, Jones received one of the company’s top honors, the Achievement Award, which is presented to the individual who has demonstrated outstanding job execution and high quality results. Jones, his wife Allie, and their son Lane, currently reside in Columbia, MD but will be relocating to Charlotte, NC in early 2014.
The company plans to forge relationship with Pond Pro to represent pond lining and geomembrane products.
INDIANAPOLIS, Ind. - Firestone Building Products Company announced that it has engaged the Pond Pro sales group to sell Firestone Building Products pond lining and geomembrane products. “Firestone Building Products is returning to an independent rep-based distribution model, and we are pleased that the Pond Pro sales organization will be re-joining our team to represent the Firestone product line throughout the United States,” says Tim Dunn, president of Firestone Building Products. “Broadening our sales representation locally with Pond Pro will allow us to continue to grow our pond lining and geomembrane business in key markets across the country.” The Firestone Building Products line of landscape and lining products includes PondGard Rubber Liners, fPP-R Geomembrane, EPDM Geomembrane systems and Garden Envy Composite Pavers for landscapers, pond builders, contractors and consumers who need reliable solutions for containment applications and decorative water features. The independent sales representative organization is in place and began selling Firestone Building Products lining and geomembrane products November 5, 2013.