Shares of ServiceMaster Co. soared more than 10 percent Nov. 28 after the lawn care service and pest control provider said it is considering selling itself.
ServiceMaster said its board has hired investment banks Morgan Stanley and Goldman Sachs to explore the possible sale of the company, along with other options. It also hired the law firm Sidley Austin as its legal adviser to facilitate the process.
The company, which announced plans last month to move its corporate headquarters to Memphis, Tenn., said it doesn't plan to release additional information about the status of its review until it completes the process.
Its stock climbed $1.21, or 10.1 percent, to $13.11 in afternoon trading on the New York Stock Exchange, at the high end of a 52-week range of $9.66 to $13.62.
"Our board is open-minded with respect to our future path and committed to maximizing value for our shareholders," said J. Patrick Spainhour, chairman and CEO. "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."
Spainhour's remarks were released in connection with his presentation to an investor conference in New York.
He said the company expects revenue to increase in the mid to high single-digit percentages and earnings-per-share growth in the low double digits in 2007. Its target by 2009 is high-single-digit revenue growth and earnings per share progressively increasing to the mid-teen level.