Pest control company ServiceMaster (SERV) is moving into Europe with its purchase of Swedish based Nomor Holding AB. Several aspects of the transaction must be considered to evaluate the impact on ServiceMaster. These include the metrics of the acquisition, growth and profit margins, projected leverage, the portfolio of offerings, and the European pest control market. As will be shown, shares at about $56 are not a buy due to the high earnings multiple but are worth holding because of the potential operating performance from recent events.
The move into Europe continues the