ServiceMaster to Spin Off Frontdoor
Memphis-based franchisor ServiceMaster [NYSE:SERV] announced today that its board has approved a spin off. Its American Home Shield Business subsidiary, which issues home warranties, and three other brands will be rolled into the new company, called Frontdoor. Frontdoor is expected to begin to publicly trade on NASDAQ on October 1 under the symbol “FTDR.”
ServiceMaster delivers residential and commercial services through nearly 8,000 owned, licensed and franchised locations across seven brands.
Frontdoor will consist of ServiceMaster’s former subsidiaries of American Home Shield, HSA, Landmark and OneGuard. With annual revenue of approximately $1.2 billion, it will have a nationwide network of more than 2,000 employees and 15,000 pre-qualified professional contractor firms.
Nik Varty, chief executive officer of ServiceMaster, stated:“As two independent, publicly traded companies, ServiceMaster and Frontdoor each benefit from increased focus and flexibility to better serve customers, drive organic growth and unlock significant long-term value for our shareholders.”
ServiceMaster shareholders will own more than 80 percent of Frontdoor’s common stock.
“Our team is obsessed with taking the hassle out of owning a home, and being the first choice when it comes to home repairs, maintenance and improvements,” said Rex Tibbens, president and CEO of Frontdoor. “As a stand-alone company, we’ll be fully focused on delivering a great customer experience and delivering long-term shareholder value.”
Photo: American Home Shield contractor c/o ServiceMaster