ServiceMaster Co. will sell its management services unit, which serves institutional customers, to Aramark Corp. for $800 million in cash, with net after tax cash proceeds of approximately $600 million. It is part of a plan to focus on faster growing, more profitable services for residential customers. The transaction is expected to close by mid-November after obtaining regulatory approvals.
The company also said it plans to close nonstrategic and unprofitable businesses -- TruGreen LandCare Construction and Certified Systems Inc. -- resulting in a fourth-quarter restructuring charge of $300 million to $365 million. TruGreen had revenues of approximately $168 million in 2000 and approximately 2,500 employees. CSI employs 100 people and provides out-sourced human resources support to 10,000 people. It reported 2000 revenues of approximately $300 million.