Five years after they merged, FirstService Corporation is set to spin off its Colliers International operation.
FirstService Corporation announced yesterday (Tuesday) that its Board of Directors has approved, in principle, a plan to separate FirstService into two independent publicly-traded companies — Colliers International, one of the top three global leaders in commercial real estate and FirstService Corporation, the North American leader in residential property management and services.
After the separation, FirstService Corporation will be comprised of the current FirstService Residential and FirstService Brands divisions.
Colliers International has been the fastest growing commercial real estate firm in the world over the past 10 years and is ranked number 5 in the IAOP(R) annual list of Global Outsourcing 100 companies. It operates in the United States, Canada, Europe, Australia/New Zealand, Asia and Latin America. Its pro forma revenue last year totalled $1.7 billion.
Jay Hennick, currently founder and CEO, will serve both as executive chairman of Colliers International and chairman of FirstService Corporation while John Friedrichsen, currently Chief Financial Officer, will serve as Chief Financial Officer of Colliers International.
Doug Frye, currently Global President & CEO of Colliers International, will retain his current role and leadership of the executive team in charge of operations, as will Dylan Taylor, currently Global COO of Colliers International.
Scott Patterson, currently COO, will serve as CEO of FirstService Corporation and Jeremy Rakusin, currently Vice President Strategy & Corporate Development will serve as Chief Financial Officer of FirstService Corporation.
“With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders since becoming a publicly listed company in 1993,” said Hennick.
“For more than 20 years FirstService shareholders have enjoyed a compound annual return of more than 20 percent on their investment. In fact, $100,000 invested in FirstService shares when we first listed is worth more than $3.2 million today.
“Over the past several years we continued to strengthen and grow our company… Today we are taking the next bold, but logical, step in unlocking even greater value for FirstService shareholders by separating our company into two, billion dollar public companies, Colliers International and FirstService Corporation,” he concluded.