ServiceMaster CEO steps down, board explores sale of Brands segment

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MEMPHIS, Tenn. —  The CEO and director of Memphis-based ServiceMaster is stepping down, as the company also announced it will explore strategic alternatives for its ServiceMaster Brands business, including a potential sale of the segment.

CEO Nik Varty will be pursuing other opportunities, but will stay on in an advisory role to ensure a smooth transition, according to a company release issued Tuesday.

“Leading ServiceMaster through this important chapter in its history has been an honor,” said Varty. “With our renewed focus on delivering an excellent customer experience, and with the right tools and technologies in place, we have built a strong foundation for future growth and profitability, and we have an excellent management team in place to continue the journey.”

Replacing Varty will as interim CEO will be current Chairman Naren Gursahaney, who has served on the Board  of Directors since 2017.

“Over the past two years, Nik has helped drive shareholder value creation through the successful spinoff of American Home Shield and the transformation of ServiceMaster’s core Terminix business. With the company moving toward becoming a more focused, pure-play organization, Nik felt it was the right time to step down. The Board thanks Nik for his leadership and commitment to working to ensure a smooth transition” said Gursahaney.

Moving forward, the company has hired an outside firm to search for a permanent replacement.

The ServiceMaster Brands segment provides residential and commercial services primarily through franchised operations, through brands including ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. In the twelve-month period ending September 30, 2019, the segment reported $252 million in revenue.

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