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
| May 7, 2013
First look: Adrian Smith + Gordon Gill skyscraper designed to 'confuse the wind'
The 400-meter-high, 116-story Imperial Tower in Mumbai will feature a slender, rounded form optimized to withstand the area's strong wind currents.
| May 6, 2013
SAFTI FIRST announces 3D Autodesk Revit models for fire rated wall, window, and door systems
SAFTI FIRST, leading USA-manufacturer of fire rated glass and faming systems, is proud to announce that Autodesk Revit models are now available for its fire rated walls, window and door systems via www.safti.com and Autodesk Seek.
| May 6, 2013
7 major multifamily residential projects in the works
A $140 million redevelopment of a landmark, 45-building apartment complex in Los Angeles is among the nation's significant multifamily developments under way.
| May 3, 2013
5 common failures in paints and coatings
As experienced designers, contractors, and owners know, most paint and coating problems are correctable, but some are especially stubborn to address. Here is a partial compendium of typical failure modes and methods for addressing the problem.
| May 3, 2013
'LEED for all GSA buildings,' says GSA Green Building Advisory Committee
The Green Building Advisory Committee established by the General Services Administration, officially recommended to GSA that the LEED green building certification system be used for all GSA buildings as the best measure of building efficiency.
| May 3, 2013
SMPS Foundation accepting applications for Ron Garikes Student Scholarship
The SMPS Foundation is now accepting scholarship applications from eligible students majoring in marketing, communications, or public relations who are planning a career in professional services marketing in the architecture, engineering, and construction industry.
| May 3, 2013
Another edible city? Artist creates model city with chewing gum
French artist Jeremy Laffon pieced together a model city with thousands of sticks of mint-green chewing gum.
| May 2, 2013
First look: UC-Davis art museum by SO-IL and Bohlin Cywinski Jackson
The University of California, Davis has selected emerging New York-based practice SO-IL to design a new campus’ art museum, which is envisioned to be a “regional center of experimentation, participation and learning.”
| May 2, 2013
A snapshot of the world's amazing construction feats (in one flashy infographic)
From the Great Pyramids of Giza to the U.S. Interstate Highway System, this infographic outlines interesting facts about some of the world's most notable construction projects.
