UGL has entered into an agreement to sell its property service arm DTZ to a private equity consortium for $1.215 billion.
The consortium comprises TPG Capital (TPG), PAG Asia Capital (PAG) and Ontario Teachers’ Pension Plan (OTPP) (together TPG and PAG Consortium).
UGL chairman, Trevor C. Rowe AO said: “Over the past 18 months, the Board has carefully evaluated various options to determine the optimal corporate structure for UGL, recognising that UGL is comprised of two distinct and sizeable businesses which operate in different markets, with different geographic focuses and strategic requirements.
“The Board continues to believe a structural separation of DTZ and Engineering is in the best interests of shareholders, and will be beneficial for both our clients and our people. The sale price represents a fair UGL Managing Director and CEO, Richard Leupen said the board believes that a separation of the two distinct businesses is the right decision to allow both DTZ and Engineering to “focus on their own strategies and opportunities for growth unhindered.”
The sale is expected to have no impact on DTX’s NEw York metorpolitan oeprations. A spokesman said, “It will be business as usual with no disruptions. Dave Gialanella will continue to lead the NY-NJ region, with Dirk Hrobsky and Chris Helgesen leading the NYC office.ˮ
