ServiceMaster jumps on spinoff news

Article Excerpt

SERVICEMASTER GLOBAL HOLDINGS INC. $57 (New York symbol SERV; Manufacturing sector; Shares outstanding: 135.4 million; Market cap: $7.7 billion; Takeover Target Rating: Medium; No dividends paid; www.servicemaster.com) has three divisions: Terminix (53% of its 2017 revenue, 49% of its earnings) sells termite and pest control services to 2.7 million customers in the U.S., Canada, Mexico and the Caribbean; American Home Shield (40%, 38%) sells home service plans that cover the repair costs of major appliances and major systems such as heating and cooling; and Franchise Services (7%, 13%) sells a variety of services to homeowners, such as cleaning, cabinet and wood furniture repair, home inspection and disaster restoration. The U.S. accounts for 98% of its total revenue. ServiceMaster completed an initial public offering of 39.5 million shares at $17.00 a share on June 25, 2014. ServiceMaster was founded in 1929 as a moth-proofing company; later added other services such as carpet cleaning Terminix controls 21% of the U.S. pest control market American Home…