The Service Companies Accelerates Growth in Advance of 25th Anniversary

Building on New Resources

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. June 29, 2011

June 28, 2011 - Leveraging new capital resources and new executive leadership, The Service Companies (TSC) are accelerating growth in anticipation of the group's 25th anniversary in 2012. In March of this year, private equity firm Vision Capital joined DLJ Merchant Banking Partners (a Credit Suisse affiliate) as an equity investor in The Service Companies. Vision Capital's investment provides TSC with further resources to invest in best practices, equipment and acquisitions to fuel continued growth.

“We are so grateful to have Vision Capital join DLJ as investors in TSC,” commented newly appointed CEO Steve Wilson. “Our two equity partners are best-in-class and serve to ensure that we can adapt quickly and invest in people, processes and technology to accelerate the growth trajectory that we have worked so hard to establish.”

“TSC is an ideal addition to our US portfolio,” said Matt Shafer of Vision Capital. “We made the investment because we believe in the TSC leadership team and in the company's position as the premier service provider for the luxury hospitality industry. TSC's potential for growth in its space is unrivaled, and we look forward to supporting this superb team of seasoned industry professionals as they continue to expand the business.” Added Neal Pomroy, Chairman of TSC's Board and a partner at DLJ,"We welcome Vision's involvement with TSC. They are wonderful partners and we are confident that the combination of Vision and DLJ will allow TSC to accelerate its already impressive growth."

Since its acquisition by DLJ Merchant Banking Partners in 2008, TSC has fortified its management team to include experienced hospitality industry executives; expanded its service portfolio organically and via key acquisitions; developed a proactive sales and marketing effort to fast-track growth; and added Vision Capital to its roster of equity investors.

In the past two years, TSC has added the following hospitality veterans to its executive staff:

• Steve Wilson , President and Chief Executive Officer, previously spent 20 years with Hyatt Hotels including general manager positions at several high-profile domestic properties
• Victor Lopez , Senior Vice President of Business Development, whose career includes 35 years in hotel development and operations including three decades with Hyatt
• John Thiesfeld , Senior Vice President of Sales and Marketing, whose 25-year career includes 17 years with Hyatt
• Bruce Ballard , Chief Financial Officer, whose 25-year career includes 20 years with Aramark
• **Kurt Wong, Vice President of Operations and Continuous Improvement, whose 23-year career includes positions with Hilton Worldwide and Harrah's (now Caesars Entertainment)
• Mike Rosenow , Senior Vice President of Human Resources and Chief Compliance Officer, who joined the company after 10 years with Harrah's (now Caesars Entertainment)

With the addition of these leaders, TSC added turnkey housekeeping to its service portfolio and closed out 2010 having cleaned over 2 million hotel rooms. The team followed the expansion into housekeeping with the acquisition of JRS International Inc. last fall. JRS provides window and chandelier cleaning services to upscale hotels and resorts throughout the United States and the Caribbean. Joel Shumaker, who founded JRS International in 1989, joined TSC as General Manager of its new JRS International subsidiary following the acquisition.

Wilson calls TSC's business outlook "extremely positive," for both the near and long-term. "Our approach to outsourcing is more relevant than ever in the wake of the recession, which caused operators to cut overhead costs sharply. Even though general managers may have cut back as far as they could, TSC offers them a way to improve profit margins while enhancing cleanliness."

While reducing costs may provide the impetus for outsourcing, TSC equally values performance. The company guarantees to maintain or improve its clients' quality assurance scores, as measured either by franchise brand inspectors or independent rating agencies. TSC has successfully fulfilled that pledge throughout its 24 years in business.

TSC's ability to deliver consistent quality is due, in part, to extensive training, according to Rosenow, who has introduced world-class web-based educational modules to support TSC's orientation and on-the-job training programs. Last year TSC hosted its second annual two-day management summit, where managers were encouraged to "think big, act small, nail the basics, and deliver personalized service," he said.

Wilson credits his executive team's 200 combined years of hospitality experience as the key to understanding and supporting individual properties. "We all have walked the walk, and we speak the GM's language," he said. "We understand the challenges that face the front-line property staff. Our clients know we're available whenever they need us."