Paul Weiss, Wachtell Advise on Roark’s Maintenance Business Buy

Paul Weiss and Wachtell, Lipton, Rosen & Katz played lead roles in Roark Capital Group’s $1.55 billion acquisition of ServiceMaster Global Holdings, Inc.'s residential and commercial cleaning and restoration businesses.

Paul Weiss advised Atlanta-based Roark, while Wachtell advised Memphis, Tenn.-based ServiceMaster Global. The deal splits ServiceMaster’s business into two, Terminix and ServiceMaster Brands, “to pursue their own distinct strategies and growth opportunities,” according to a statement from ServiceMaster.

Newly acquired ServiceMaster Brands is a portfolio of residential and commercial services including ServiceMaster Restore, ServiceMaster Clean, Merry Maids, AmeriSpec, and Furniture Medic. The brands operate through a network of franchised and company-owned businesses that generated about $2.6 billion in system-wide sales for the year ended June 30, 2020, according to the statement.

After closing, expected in about 30 to 60 days, ServiceMaster Global Holdings will change its name to Terminix, becoming a pure play global pest control business. It plans to invest the expected $1.1 billion after-tax proceeds from the deal to debt reduction, investments in pest control, and return to shareholders,” the statement said.

“This transaction represents a tremendous outcome for the stakeholders of both of our businesses,” said ServiceMaster Global Chairman and interim CEO Naren Gursahaney.