AMS and ARS Could Possibly be for Sale

February 20, 2006
/ Print / Reprints /
/ Text Size+
DOWNERS GROVE, Ill. - American Residential Services (ARS) and American Mechanical Services (AMS) may be up for sale. After announcing its intention to expand its disaster restoration business, ServiceMaster said it is "exploring alternatives" in regard to ARS and AMS, including the sale of both businesses. The company has retained William Blair & Company as its financial advisor to assist in this process.

The company said that it does not expect to disclose developments concerning the status of this process unless and until it and its board of directors has approved a definitive transaction. According to the company, ARS and AMS generate about $675 million in sales, but it appears both are not in ServiceMaster's focus on growth business.

"Our best opportunity to build shareholder value is to have fewer priorities and to pursue them with greater intensity. We have applied that thinking to both our strategies and our portfolio," said Jonathan Ward, chairman and chief executive officer. "This action reflects the company's continued commitment to brands which have the ability to achieve sustainable national market leadership and a high potential to achieve significant and consistent growth in share, revenue, and return on capital."

The possible sale of ARS and AMS came on the heels of the company announcing the acquisition of Fort Worth-based InStar Services Group, which is engaged in the commercial disaster response and reconstruction business. InStar provides a range of services, from planning prior to an event, to emergency response following the event, and continuing service through cleaning, recovery, and reconstruction. Terms were not disclosed.

InStar had estimated fiscal year 2005 revenues of roughly $130 million. The company expects to complete the acquisition of InStar during the first quarter after clearing antitrust review. "The acquisition of InStar will complement the services of ServiceMaster Clean and changes the game in the commercial disaster response and restoration market," said Ward. "Combining the capabilities of InStar with ServiceMaster Clean will create a single source solution for the delivery of comprehensive commercial loss services on a national basis, and an opportunity for our customers to significantly reduce business interruption."

Publication date: 02/20/2006

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

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.


NEWSMakers: Joseph Groh

Joseph Groh, an industry veteran boasting 35 years of HVAC experience, discusses the 2008 bicycle accident that cut his career tragically short, and how the Joseph S. Groh Foundation is his way of giving back to the construction trade. Posted on Aug. 22.

More Podcasts


NEWS 08-25-14 cover

2014 August 25

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Prohibiting HFCs

EPA is proposing a rule that would prohibit some HFCs in select refrigeration applications. Do you agree with this move?
View Results Poll Archive


2014 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 Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con