SCHEDULE 13G: Pacer Funds and Affiliates Disclose Significant Passive Stake in Vestis Corp

Pacer Advisors, Inc., along with its affiliated ETFs and Joe M. Thomson, have disclosed a combined beneficial ownership of 10.5% of Vestis Corp's common stock as of December 31, 2024, held for ordinary course investment purposes.

Summary

• Pacer Advisors, Inc., Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer US Small Cap Cash Cows Growth Leaders ETF, and Joe M. Thomson (collectively, the "Reporting Persons") have filed a Schedule 13G.
• The filing discloses beneficial ownership of Vestis Corp's Common Stock, Par Value $0.01 Per Share (CUSIP No. 29430C102).
• As of December 31, 2024, the Reporting Persons collectively beneficially own 13,829,781 shares of Vestis Corp common stock.
• This aggregate amount represents 10.5% of the total 131,700,887 shares of common stock issued and outstanding as of December 31, 2024.
• Pacer US Small Cap Cash Cows ETF holds 8,186,296 shares, representing 6.22% of the class.
• Pacer US Cash Cows 100 ETF holds 5,626,741 shares, representing 4.27% of the class.
• Pacer US Small Cap Cash Cows Growth Leaders ETF holds 16,744 shares, representing 0.01% of the class.
• Pacer Advisors, Inc. serves as the investment adviser to the Funds and maintains discretionary investment and voting authority over the 13,829,781 shares held by the Funds.
• Joe M. Thomson, as the majority stockholder of Pacer Advisors, Inc., may be deemed a beneficial owner of these shares.
• All Reporting Persons disclaim beneficial ownership of the shares held by the Funds, except to the extent of their pecuniary interest.
• The shares were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Vestis Corp.

Sentiment

Score: 6

Explanation: The filing indicates a significant passive institutional investment in Vestis Corp, which is generally a neutral to slightly positive signal of investor interest, without implying any intent to influence control or suggesting any operational changes.

Positives

• The disclosure indicates significant institutional investment in Vestis Corp, which can be viewed as a vote of confidence from passive investors.
• The investment is explicitly stated to be for ordinary course of business, without intent to influence control, suggesting stability in the ownership structure.

Risks

• The filing explicitly states that the shares were not acquired or held for the purpose of changing or influencing the control of the issuer, which means these significant holders are not expected to drive strategic changes or activist campaigns.

Future Outlook

This Schedule 13G filing is a disclosure of beneficial ownership and does not contain any forward-looking statements or guidance regarding Vestis Corp's future performance or strategic direction.

Management Comments

• Joe M. Thomson, as Chairman and President of Pacer Funds Trust and President of Pacer Advisors, Inc., certified that the securities were acquired and are held in the ordinary course of business and not for the purpose or effect of changing or influencing the control of the issuer.

Industry Context

This filing represents a routine disclosure by institutional investors (ETFs and their adviser) of a significant passive stake in a publicly traded company, common practice in the investment management industry for compliance with SEC regulations when ownership thresholds are crossed.

Related Party Transactions

• The Reporting Persons (Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer US Small Cap Cash Cows Growth Leaders ETF, Pacer Advisors, Inc., and Joe M. Thomson) have entered into a Joint Filing Agreement to file this Schedule 13G jointly, as permitted by Rule 13d-1(k) of the Act.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional holders of Vestis Corp's common stock.
• Management: Informs management of a substantial passive ownership stake, though without intent to influence control.

Next Steps

• The Reporting Persons will continue to comply with SEC filing requirements for beneficial ownership disclosures.

Key Dates

Recommendation

Keywords

Vestis Corp, Pacer Advisors, Pacer Funds, Schedule 13G, beneficial ownership, institutional investment, common stock, ETF, passive investment