Downers Grove, IL, November 28, 2006-- ServiceMaster said its board has decided to explore strategic alternatives designed to maximize value for shareholders.
The company has retained Morgan Stanley and Goldman Sachs as its financial advisors and Sidley Austin as its legal advisor to facilitate the process.
In remarks prepared for the Company's Investor and Analyst Conference in New York City, J. Patrick Spainhour, chairman and chief executive officer said, "Throughout our Investor Conference our shareholders will have the opportunity to become familiar with our updated business plan. This plan is the result of a bottoms-up analysis of our business units. I believe that it is appropriately bold yet achievable. The plan will provide the basis from which we will evaluate strategic alternatives and the framework on which we will engage in conversations with third parties."
"We believe that our improved portfolio, combined with solid execution of our business plan, should enable us to deliver mid to high single-digit revenue growth and low double-digit earnings per share growth in 2007," continued Spainhour. "Based on the actions we are taking this year and plan to take in the years ahead, our target is to achieve high single digit revenue growth, and earnings per share progressively increasing to the mid-teen level by 2009, with cash from operations growing and continuing to substantially exceed net income."
"Our Board is open minded with respect to our future path and committed to maximizing value for our shareholders. We intend to explore a range of strategic alternatives, which includes the possible sale of the company, with our financial and legal advisors as promptly as possible." said Spainhour. "If the exploration of strategic alternatives creates the probability of a transaction that would deliver value to shareholders that is superior to what the Company could achieve with its updated business plan, then the Board will pursue that transaction."
