A joint venture led by private equity giant TPG Capital has closed the acquisition of DTZ which it plans to merge with its US-based commercial real estate services firm Cassidy Turley to create a global property brokerage.
A joint venture led by private equity giant TPG Capital has closed the acquisition of DTZ which it plans to merge with its US-based commercial real estate services firm Cassidy Turley to create a global property brokerage.
DTZ will continue to operate under the DTZ brand and the leadership of executive chairman Brett White, former CEO of CBRE Group. Tod Lickerman will continue in his current role as global CEO of DTZ and report to Brett White.
'DTZ now has the independent governance, strong capital base and speed-to-market of a private company, which will allow us to grow and serve our clients’ ever-changing needs,' commented Lickerman.
An affiliate of DTZ Investment Holdings announced in September that it had entered into an agreement to acquire Cassidy Turley, with plans to combine it with the DTZ business during 2015. The deal, which was backed by TPG and its investment partners, Asian alternative investment manager PAG Asia Capital and the Canadian pension fund Ontario Teachers’ Pension Plan, is expected to be completed by December 31, 2014.
DTZ said the acquisition of Washington, DC-headquartered Cassidy Turley represents the first significant investment in its growth strategy – immediately expanding DTZ’s commercial real estate presence in the US. The new company will generate $2.9 bn of annual revenue and employ more than 28,200 people.
Speaking on behalf of the TPG consortium, TPG’s Ben Gray said: 'The combination of DTZ’s strong businesses in Asia and Europe, its existing businesses in the US and Cassidy Turley’s market-leading business in the US, will create a global, full service property services company that will be top 3 in the sector.'
TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan entered into a binding agreement to buy DTZ from Australian group UGL in June for AU$1.2 bn (€840 mln).
Sydney-listed UGL had acquired London-based broker DTZ for about €90 mln in December 2011 and merged it with its own property services business. In August 2013 UGL said it intended to demerge DTZ, possibly with a separate listing. It later decided to sell the property adviser.
