Report: ServiceMaster Being Eyed for Two Bids

New York, NY, March 9, 2007--ServiceMaster Co., which put itself up for sale last year, is drawing interest from at least two buyout groups that may bid more than $4 billion, four people with knowledge of the discussions said.

Clayton, Dubilier & Rice Inc. is preparing one offer, and Bain Capital LLC has formed a group with private-equity firms to make another bid, said the people, who declined to be identified because an agreement hadn't been reached. Final offers for the owner of TruGreen ChemLawn and Terminix pest control are due this month, the people said.

ServiceMaster, based in Downers Grove, Illinois, hired Morgan Stanley and Goldman Sachs Group Inc. to advise on its strategic alternatives and said Nov. 28 it would consider a sale. ServiceMaster's cash flow and lagging share price have attracted buyers who intend to borrow money to acquire the company, then lower costs and sell it back to the public.