Canada's FirstService acquires Colliers UK

Colliers International UK will in future operate as a wholly owned subsidiary of Canada's FirstService Corporation, the company announced on Wednesday. In addition, FirstService will assume the UK ownership interests in Ireland and Spain. FirstService now owns almost 90% of Colliers International by revenue globally.

FirstService paid $22 mln (EUR 16.5 mln) for the UK and assumed EUR 21 mln of debt. The company was placed into administration immediately prior to the purchase by way of a pre-packaged transaction. For the fiscal year ended 2011, Colliers UK generated revenues of approximately EUR 75 mln.

The UK management team remains unchanged, with Tony Horrell continuing as CEO of Colliers International UK & Ireland and as part of Colliers International’s EMEA Board and International Governing Committee.

Commenting on the acquisition, Tony Horrell said: 'We are delighted to now be fully integrated with Colliers International globally. This deal means that we have recapitalised the UK business and have the financial might of FirstService behind us, who intend to invest further in our business, as well as the global strength and depth of Colliers International to call upon.'

The UK unit has 'a skip in its step' now it is debt-free, Horrell added. 'We aim to invest in more people and build a deeper and stronger business.' Horrell is particularly keen to expand the company's London transactions team in the City and West End, but said all four lines of business - property management, valuations, ratings and business consultancy and project management - could be bigger. He did not rule out the possiblitiy of acquisitions to reach these goals.

Doug Frye, Chairman of Colliers International added: 'The EMEA region is a significant component of our global growth strategy and building a strong UK business is central to our success. The UK operations have been part of Colliers International for 17 years, and we know it is a great business, with exceptional employees and an excellent client list. I am confident that by combining our strengths we will accelerate the success of our clients and our people.'

The UK firm is part of Colliers International and has 13 offices in the UK and Ireland employing 700 staff.

Colliers International is the third-largest commercial real estate services company in the world with 12,300 staff operating out of more than 530 offices in 62 countries.