Santa Rosa Company Agrees to Be Acquired
United Press International
SANTA ROSA, Calif. —
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.
