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ServiceMaster acquires Gregory Pest Solutions, McCloud Services

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ServiceMaster acquires Gregory Pest Solutions, McCloud Services

ServiceMaster Global Holdings Inc. on Oct. 22 said it acquired pest management companies Gregory Pest Solutions Inc. and McCloud Services.

Financial terms of the transaction were not disclosed.

The two companies are service providers from Copesan Services Inc., which ServiceMaster acquired in 2018.

"These acquisitions are helping us build a multi-brand service network while strategically adding incredible commercial talent and capabilities to differentiate ourselves in the eyes of our customers, and to take advantage of having the most recognized and preferred brands in the commercial sector," ServiceMaster CEO Nik Varty said in a statement.

ServiceMaster said it will retain the management teams and brands of both companies. Gregory Pest Solutions President Ben Walker and McCloud Services CEO Chris McCloud will continue with their roles, on top of new leadership positions in their respective areas. The management teams of both companies will also have continuing roles in their respective divisional management teams, ServiceMaster added.

LR Tullius Inc. acted as adviser for McCloud Services.

ServiceMaster reported an adjusted net income of $42 million or 31 cents per share for the third quarter of fiscal 2019, up from $32 million or 24 cents per share in the same period last year. Revenue went up 7% year over year to $528 million while adjusted EBITDA for the quarter rose 18.4% to $97 million.

The company also revised its full-year outlook to reflect recent acquisitions and strong third-quarter performance. It now expects revenue for the whole year to range between $2.07 billion and $2.09 billion from a previous forecast of between $2.05 billion and 2.06 billion.

Meanwhile, ServiceMaster now expects full-year adjusted EBITDA to come in between $415 million and $425 million from a previous expectation of between $435 million and $445 million.