VOL. 126 | NO. 81 | Tuesday, April 26, 2011
ServiceMaster Sells TruGreen LandCare to Aurora
By Bill Dries
ServiceMaster Co. Monday announced it is selling its commercial landscaping business, TruGreen LandCare, to Aurora Resurgence Group.
The sale of the division of the Memphis-based company, which includes numerous residential and commercial service networks, came after the close of the markets and had been anticipated. No dollar figure was disclosed.
"We think that there's greater opportunity for us, once we exit the landscape business," departing CEO Patrick Spainhour said during an earnings conference call with analysts last month. "We can focus on being a partner with the landscape business. We think that is a significant opportunity going forward."
Aurora is a Los Angeles-based private investment firm that buys debt and securities equity in middle market companies. Aurora's website describes it as a source of capital that typically partners with companies that manage the assets Aurora buys.
Hank Mullany, the new ServiceMaster CEO as of this month, said the sale was part of a continuous review of the business. "Our decision to sell to Aurora Resurgence allows us to concentrate on our core residential and commercial businesses," he said.
Anthony DiSimone, managing partner of Aurora Resurgence, indicated TruGreen LandCare's management team would remain in place at least for now, calling the team "experienced."
The sale does not affect the TruGreen lawn care unit of ServiceMaster, which remains part of the collection of brands and companies that provide services for residential and commercial clients.