DTZ, a leading global commercial real estate firm, has reached a definitive agreement to acquire Cushman & Wakefield from Exor for $2.04 billion. The merger would create a commercial real estate services company with over $5.5 billion in annual revenue, 43,000 employees, and more than 4 billion sf in its global real estate management portfolio.
The combined company intends to keep the Cushman & Wakefield name. The deal, which is subject to regulatory approval, is expected to be completed by the end of this year.
The DTZ-Cushman marriage would create a company whose revenue from brokerage fees roughly equals that of JLL, which has been the second-largest commercial real estate services entity behind CRBE.
Cushman & Wakefield, which was founded in 1917, has 259 offices in 60 countries. In April, it acquired J.F. McKinney + Associates, a leading leasing firm representing over 16 million sf of Chicago-area office space.
Chicago-based DTZ operates from more than 260 offices in 50 countries that completed $63 billion in transaction volume last year. DTZ reportedly has been interested in merging with Cushman for several years.
“It’s not just about size. It’s also about local expertise and deep customer service,” said Brett White, the former CRBE Chief Executive, who became DTZ’s Executive Chairman in March, and will be Chairman and CEO of the combined company.
The DTZ-Cushman marriage would create a company whose revenue from brokerage fees roughly equals that of JLL, which has been the second-largest commercial real estate services entity behind CRBE. According to The Wall Street Journal, CBRE’s 2014 revenue was $9 billion, JLL’s $5.4 billion.
Last November, a private equity consortium backed by TPG Capital, PAG Asia Capital, and Ontario Teachers’ Pension Plan, paid the Australia-based engineering firm UGL $1.1 billion to buy DTZ. At the time, DTZ was in the process of acquiring the New York-based commercial real estate brokerage Cassidy Turley. That deal was finalized in January, and the two firms were merged, creating a company with $2.9 billion in annual revenue, more than 28,000 employees, managing 1.9 billion sf of property and 1.3 billion sf of facilities for institutional, government, corporate, and private clients.
Exor SpA—which gets $1.28 billion in net proceeds from its part of the Cushman sale—is owned by the Agnelli family, reputedly the largest shareholder in Fiat Chrysler Automobiles. Exor has stated it plans to proceed with its merger with Axis capital Holdings.
Details about combining DTZ and Cushman—such as how market or portfolio overlaps will be reconciled—have yet to be disclosed. But the management team has already begun to take shape.
Once this deal is completed, Tod Lickerman, DTZ’s chief executive (and JLL’s former CEO), will become president of the new company. Cushman’s North America chief executive, John Santora, will hold titles of COO and chief integration officer. Carlo Barel di Sant’Albano, Cushman’s international chief executive, will take a senior global leadership role at the combined company. Edward Forst, Cushman’s CEO, is expected to leave the company.
Millbank, Tweed, Hadley & McCloy advised Cushman in this deal.
Related Stories
| Sep 15, 2014
Ranked: Top international AEC firms [2014 Giants 300 Report]
Parsons Brinckerhoff, Gensler, and Jacobs top BD+C's rankings of U.S.-based design and construction firms with the most revenue from international projects, as reported in the 2014 Giants 300 Report.
| Sep 15, 2014
Argentina reveals plans for Latin America’s tallest structure
Argentine President Cristina Fernández de Kirchner announces the winning design by MRA+A Álvarez | Bernabó | Sabatini for the capital's new miexed use tower.
| Sep 14, 2014
Ranked: Top Veterans Administration sector AEC firms [2014 Giants 300 Report]
CannonDesign, Clark Group, and URS top BD+C's rankings of the nation's largest Veterans Administration building sector design and construction firms, as reported in the 2014 Giants 300 Report.
Sponsored | | Sep 13, 2014
5 common questions leaders should never ask
Asking the right questions can help business leaders to anticipate changes, seize opportunities and move their firms in new directions. SPONSORED CONTENT
Sponsored | | Sep 13, 2014
Right Way Plumbing finishes first at Max Planck Florida Institute
The Max Planck Florida Institute consists of a three-story, 100,000-sf scientific research facility with 30,000 feet of copper joined with Viega ProPress fittings.
| Sep 12, 2014
Total immersion: Has virtual reality's time finally come?
The emergence of low-cost VR technology means that anyone with a few hundred bucks and a decent workstation can get in the game. But, as our experts reveal, pulling off VR is not so simple.
| Sep 12, 2014
Will on-site parking remain king in the development world?
In spite of the trend away from multi-car residences, not much has changed with regard to parking spot allocations within apartment buildings and other multi-unit residential developments, writes GS&P's Doug Sharp.
| Sep 11, 2014
5 competing designs unveiled for Presidio Parklands in San Francisco
To turn the underdeveloped area by Chrissy Field into new public space, San Francisco's Presidio Trust unveiled the five designs by five teams they invited earlier this year.
| Sep 11, 2014
Cintas invites public to vote for 'America's best restroom'
For the 13th consecutive year, Cintas Corporation is back with its popular America’s Best Restroom Contest. A team of survey editors once again scanned the country for the most creative and clean public restrooms and produced a crop of nominees sure to please.
| Sep 10, 2014
Ranked: Top transit facility sector AEC firms [2014 Giants 300 Report]
Leo A Daly, URS, and Skanska head BD+C's rankings of the largest transit facility sector design and construction firms, based on the 2014 Giants 300 Report.