ServiceMaster considers sale of TG LandCare

Discussion in 'Pesticide & Herbicide Application' started by Ric, Nov 30, 2010.

  1. Ric

    Ric LawnSite Fanatic
    Messages: 11,969

    Here is part of a Copy & Paste from a competitive publisher. TG Land care pulled out of my town after only one year. Typical of TG/CL, the land care division turned Fine Yards into Pasture Grass. I remember well the disscussion here on Lawnsite when TG/CL started the Land Care division.

    According to recent filings with the SEC, ServiceMaster is considering a sale of its landscape division, TruGreen LandCare.

    The company’s landscape division has been pinched by a drop in revenue, an increase in technician overtime costs and charges related to executive separations, according to its most recent 10-Q form.

    As a result, ServiceMaster is “exploring strategic options relating to TruGreen LandCare, including the potential sale of the business,” the filings state.

    Pat Spainhour, CEO of ServiceMaster, said this in a statement:

    “Like all companies, we continuously review our businesses against competitive and financial factors to ensure we are maximizing the value of our assets for our customers and investors. Given the challenges of the current economic environment and the performance of TruGreen LandCare, our commercial landscaping business, we have decided to explore strategic options for this single business. These options could include the sale of the business, a sale of certain assets of the business or a restructuring of the business.
  2. MarcSmith

    MarcSmith LawnSite Fanatic
    Messages: 7,157

    I coudl see the land care haveing some value, but the lawncare division not.

    here in the midatlantic region TG bought out maje companies like Ruppert, scapes, to name a few to "buy into" the market.

    once the non competes ended, companies like ruppert and scapes(now under new name) got back into the business and have been scooping up jobs they used to have before they got bought...

    with the economy the way it is, thinsg are getting tight. and competition is feirce. but I feel that TG is loosing more market share in this area, which was one of its more profitable regions.

    I doubt they will be able to sell it whole. it will get parted out and chopped up...
  3. ted putnam

    ted putnam LawnSite Platinum Member
    Messages: 4,703

    They did the same thing(buy out) of one of the major "players" here in the Little Rock Metro area about 3 yrs ago and I've been told the "no compete" agreement is a couple months away from expiring. I've also heard the previous owner/management will also be scooping up old accounts as well. IMHO, buy outs are a poor business strategy for a a business that only provides mediocre service at best overall. The security of the no compete agreement offers protection for a limited time only. After that, only superior service or a larger bank account can save the ship.
  4. MarcSmith

    MarcSmith LawnSite Fanatic
    Messages: 7,157

    when they bought out they kept all the staff and basically it was a name change more than anything... but after a few years the TG mentality krept in. thats when I left..
  5. Ric

    Ric LawnSite Fanatic
    Messages: 11,969


    You know my area since you once lived here. My town is small and to my knowledge TG/CL didn't buy out any local companies. Where I saw them were the National accounts. Fact was the first couple of service calls were actually very good work in some cases. That changed real quick. They hit a lot of Condos and pick up a few at rock bottom prices. Once again the work was way below standard but when I was called for an estimate their low ball prices had the pencil pusher trained. I don't think they lasted a year maybe two in my town. They are still both North & South of me in the larger towns, but they have a very small share of the Market in those towns.

    One of the problem in Florida is the price competition among mowing companies. Every Darwin Award Candidate has a mowing service. You can find $ 10 mows on Crag's list. This price war continues up the line to Valley Crest and TG Land Care. When I see the prices these guys are charging I can't understand how they can make it even doing the crappy work that they do. I think the untrained salesmen give away service just to make commission that day knowing they aren't going to last
  6. coolluv

    coolluv LawnSite Platinum Member
    from Atlanta
    Messages: 4,512

    Quote One of the problem in Florida is the price competition among mowing companies. Every Darwin Award Candidate has a mowing service.

    That is some funny $h9t. We have the same problem here in Ga.

    Gotta love it, and the funny thing is there will be more next year.:laugh::laugh:

  7. SpreadNSpray

    SpreadNSpray LawnSite Senior Member
    from MN
    Messages: 363

    Interesting. Where would that leave Service Master's focus concerning business in the green industry?
  8. Ric

    Ric LawnSite Fanatic
    Messages: 11,969


    I was hoping someone else would answer this but I did start this thread so here it goes.

    Service Master isn't going to change their focus. It will be the same as it was before they started True Land Care. Which didn't change after they started True Land Care. So nothing is going to change with TG/CL, They will still be a Marketing Company that offeres 4th rate Green service.
  9. Lawnboy3680

    Lawnboy3680 LawnSite Member
    Messages: 5

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  10. Lawnboy3680

    Lawnboy3680 LawnSite Member
    Messages: 5

    Just to be clear it is my understanding the company for sale is the landscape division and maintenance( mowing etc.) Trugreen chemlawn is not for sale. I have to say the Trugreen landcare company has been run into the ground. A couple of years ago these geniuses decided to buy all Husquavarna equipment because it was cheap. Well you get what you pay for. It was cheap junk in every way. They dumped that junk and followed it by buying Snapper and ferris for the same reason ( cheap). Well the problems are back. Who ever buys them better figure on new equipment.
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