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Santa Rosa Company Agrees to Be Acquired

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United Press International

American Home Shield Corp., a home warranty company, said Monday it had agreed to be bought by ServiceMaster LP, a leading building maintenance services company, in a deal worth up to $120 million.

ServiceMaster, of Downers Grove, Ill., said it had signed a definitive merger agreement to buy 80% of American Home Shield’s shares for $9.50 a share, plus up to $3.50 a share depending on the company’s performance through 1992.

Senior officers of American Home Shield would own the remaining 20% of the company.

The merger agreement calls for American Home Shield to pay ServiceMaster $2.5 million if its board changes its mind and recommends another offer.

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