HVAC Breaking News

Oct. 9, 2006: ServiceMaster Announces Sale of American Residential Services

DOWNERS GROVE, Ill. - The ServiceMaster Co. announced that it has completed the sale of American Residential Services, its HVAC business, to Caxton-Iseman Capital Inc. and Royal Palm Capital Partners Inc. Caxton-Iseman, a New York private equity firm, is the majority investor in the transaction. Donald Karnes and David Slott, former officers of a subsidiary of ServiceMaster, are investors in the venture and will participate in the management of the company.

The cash proceeds of approximately $100 million were in line with expectations and related book value. The company intends to use the proceeds to pay down debt and to finance acquisitions in other service lines. The transaction, combined with the previously announced sale of American Mechanical Services, will also result in the acceleration of the timing of approximately $33 million of tax benefits into 2006 and 2007 that were previously expected to be realized in annual installments, primarily through 2012.

"This represents the culmination of a very comprehensive process led by our outside advisors William Blair & Company," stated Ernie Mrozek, president and chief financial officer. "We are pleased that our people will be joining reputable, well financed buyers and that the business will remain headquartered in Memphis."

Publication date: 10/09/2006

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

2015 ACCA Conference

Images from the 2015 ACCA Conference in Grapevine, Texas. Posted on April 8, 2015.


NEWSMakers: Mark Crockett
Mark Crockett vice president, Crockett Facilities Services, explains the importance of technician training, the value of being a top minority-owned company in the U.S., current projects the company is managing, and much more. Posted on April 24.
More Podcasts


NEWS 05-04-15 cover

2015 May 4

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Legislation and Regulation

What legislative/regulatory issue is most important to you as a HVAC business owner?
View Results Poll Archive


2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con