Cushman & Wakefield completes DTZ merger
Real estate services firms Cushman & Wakefield and DTZ completed their merger – effectively a reverse takeover – on 1 September. They will operate under the Cushman & Wakefield name.
The 2 firms merge with a combined total of $US5 billion in revenue, 43,000 employees, 4 billion m² under management and $US191 billion in transaction value.
DTZ was listed on the London Stock Exchange when it fell into administration in 2011 after an admission of debt made its shares near-worthless. Sydney-based engineering services company UGL Ltd bought the business from its administrators for $A120 million and sold the revived enterprise, including some valuable add-ons, last November for $A1.215 billion.
The buyer was an international private equity consortium led by TPG Capital Management LP, one of the former Texas Pacific Group arms. The other partners are independent alternative investment management group PAG Asia Capital and Ontario Teachers’ Pension Plan.
DTZ’s owners will stay with the venture in a $US2 billion buyout of Cushman & Wakefield’s 81% owner, the investment arm of Italy’s Agnelli family, Exor SpA. Exor paid $US565 million for an initial 67.5% in the real estate business in 2006. Management & employees retained the balance of shares.
The TPG consortium appointed former CBRE Group chief executive Brett White as executive chairman and kept global chief executive Tod Lickerman in his role. Mr White is chairman & chief executive of the new Cushman & Wakefield and Mr Lickerman is president.
Attribution: Cushman & Wakefield.