NSI Board Approves Spin-Off of Chemicals Unit

The board of directors of National Service Industries, Inc. yesterday formally approved the spin-off of the company’s lighting equipment and chemicals businesses into a separately traded company. The spin-off company is currently called L & C Spinco, Inc. but will be officially renamed soon. The post-spin NSI will consist of NSI’s remaining textile rental and envelope businesses.

“We are confident that this transaction will provide the two separated companies both the capital structure and the management focus required for long-term growth and success, which will offer compelling value to the market and enhanced opportunities for employees of both companies,” said James S. Balloun, chairman and chief executive officer of NSI.

Mr. Balloun will serve as chairman and chief executive officer of L & C Spinco upon completion of the spin-off. Brock A. Hattox will serve as chairman and chief executive officer of the post-spin NSI.

The company also announced yesterday that Vernon J. Nagel has been named chief financial officer of L & C Spinco and will assume the position following completion of the spin-off. For the past two years, Mr. Nagel served with Jepson Associates, Inc., a private investment company, where he was responsible for merger and acquisition activity related to specialized manufacturing companies.