ServiceMaster to divest ServiceMaster brands business to focus on Terminix

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Shares of ServiceMaster Global Holdings Inc. were indicated up nearly 4% in premarket trading Wednesday, after the termite and pest control company said it’s selling its ServiceMaster Brands franchise business for $1.55 billion to Roark Capital. The deal is expected to close in 30-to-60 days. ServiceMaster said its Terminix business will benefit from the deal, given enhanced management focus and resources. “Through this divestiture, Terminix will become a pure-play, global pest control company, better positioned for the future,” said Chief Executive Naren Gursahaney. Separately, the company affirmed its third-quarter outlook for revenue from continuing operations of $495 million to $515 million. The stock has edged up 1.9% year to date through Tuesday, while the S&P 500 has gained 9.2%.
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