Cassidy Turley, the commercial real estate services provider, announced today (Monday) that it has entered into an agreement with an affiliate of DTZ Investment Holdings, to sell 100 percent of the equity interests of Cassidy Turley.
TPG, PAG Asia Capital and Ontario Teachers’ Pension Plan (the consortium that agreed to acquire DTZ) said the deal is dependent on Cassidy Turley’s combination with the operations of DTZ Group to create a global, full-service commercial real estate services company.
The Consortium’s acquisition of DTZ is currently scheduled to close around October 31, 2014. The acquisition of Cassidy Turley is expected to close on December 31, 2014.
DTZ’s full-service capabilities throughout Europe and Asia coupled with Cassidy Turley’s legacy of strong local market leadership and penetration in the U.S. will position the new company as a top global commercial real estate services firm, the buyers said in a statement.
The combination of Cassidy Turley and DTZ, which will retain the DTZ brand, will create a company with revenues of more than $2.9 billion and more than 28,200 total employees. As a result, the firm will be able to more effectively serve its clients and compete for new business anywhere in the world.
“Following a period of intensive mutual due diligence, we are confident that this combination is an excellent cultural fit as well as an opportunity to partner with a global brand,” said Joseph Stettinius, Jr., Cassidy Turley Chief Executive Officer.
“The Consortium is very pleased that DTZ Investment Holdings affiliate has reached an agreement to acquire Cassidy Turley after closing of the DTZ transaction. Cassidy Turley is a leading real estate services business in the U.S. and will complement DTZ’s existing very strong businesses in Asia and Europe as well as DTZ’s existing U.S. businesses,” said Ben Gray, Managing Partner, Asia, TPG.
In June, the private equity consortium paid $1.4 billion to buy global property services firm DTZ from UGL Ltd. of Australia and tapped former CBRE CEO Brett White as an investor expected to take a leadership role at DTZ.
“We are excited that Brett White, former Chief Executive Officer of CBRE Group, is investing in the acquisition alongside the Consortium and will be joining the Board of Directors once the DTZ transaction is completed, before becoming Executive Chairman of the new company in March 2015. In addition, we are pleased Tod Lickerman will continue in his current role as Global Chief Executive Officer of DTZ, while Joe Stettinius will become Chief Executive of the Americas,” added Gray.
Joe Stettinius will work in partnership with Tod Lickerman and Brett White to develop a plan to integrate the Americas business and create an innovative market leading platform. DTZ’s existing Americas Facilities Management business will remain part of DTZ’s Global Occupier Services organization.
“I want to recognize all of our professionals for their hard work and performance. Their focus on operational excellence and client service as well as our clients’ continued confidence in our people and platform positioned us for this opportunity to combine with DTZ. The combined companies will create a game-changing organization – not only for us but for the entire industry,” added Stettinius.