Monday, May 11, 2015

Cushman & Wakefield agrees to $2B sale, forms challenger to CBRE, JLL

Commercial real estate firm Cushman & Wakefield has agreed to sell to Chicago-based DTZ, perhaps setting up the new combined company to challenge CBRE Group (NYSE: CBG) and JLL (NYSE: JLL).
Just last year, DTZ bought Cassidy Turley, which Candace Carlisle of the Dallas Business Journal reported at the timeformed a company with $2.9 billion in revenues. But by consummating a $2 billion deal for Cushman, DTZ has swiftly created a company with more than $5 billion in annual revenue, according to a report by the Wall Street Journal. A DTZ release added that the new firm will keep the Cushman name and it will be headed up by Brett White, currently DTZ’s executive chairman and a former CEO of CBRE Group.
White told the WSJ that the deal will allow New York-based Cushman to achieve its expansion plans much faster, saying, “They wouldn’t have to wait five years to be the company they wanted to be. They only needed to wait a few months for us to close the transaction.”
Cushman is owned by Exor, an investment vehicle controlled by the Italian Agnelli family, which appears in line to bring in $1.28 billion from the deal, Reuters explained. Exor is expected to use that money to make more acquisitions, the report said.
The deal is expected to close sometime this year.
StaffNew York Business Journal