ServiceMaster Buyout

ServiceMaster (SVM Quote) agreed to a buyout by a group led by Clayton Dubilier & Rice for $15.625 a share in cash, or $4.8 billion.

Memphis, Tenn.-based ServiceMaster said the deal gives its shareholders a 16% premium to Friday's closing price and a 31% premium to its price back in November before the company put itself up for sale. The deal is worth $5.5 billion including debt assumption, the company said.

"The Board of Directors, with the aid of management and our financial advisors, conducted a thorough review of strategic alternatives available to the company and concluded that this transaction is in the best interests of our stockholders," said CEO J. Patrick Spainhour

Spainhour will stay on as CEO and Clayton Dubilier operating partner George W. Tamke will be chairman.