DTZ to acquire C&W to form €5b combine

DTZ has reached agreement to acquire peer Cushman & Wakefield. The new global real estate services combine, branded as Cushman & Wakefield, will have $5.5 bn (€4.9 bn) in revenues and 43,000 employees who will manage 371 million m2 globally on behalf of institutional, corporate and private clients.

The merger, believed to be valued at $2 bn, is backed by DTZ's owners, US private equity giant TPG, Asian alternative investment manager PAG and the Ontario Teachers' Pension Plan.

'The new company will be a top-tier global commercial real estate provider in every service line and every major geography in the world,' DTZ said in a statement. The merger is subject to customary closing conditions and is expected before the end of the year.

Cushman & Wakefield was majority-owned (80%) by Exor, a listed investment company controlled by the Italian Agnelli family.

Speaking on behalf of TPG, PAG and OTPP, Ben Gray, TPG's joint managing partner in Asia said, 'We have been delighted to be a part of one of the most exciting growth stories in this industry. Our ambitions for the new Cushman & Wakefield are great and we stand ready to assist this global leader to continue to grow and flourish through our relationships, energy and capital.'

'This transaction builds upon the considerable momentum we’ve achieved over the past 18 months and positions Cushman & Wakefield to deliver incremental value to clients worldwide from a broadened and strengthened global service platform,' said Edward Forst, president and CEO of Cushman & Wakefield. 'The combined company will truly represent the best our industry has to offer, with an enhanced ability to help clients achieve their goals and to deliver rewarding prospects for the tremendous Cushman & Wakefield team.'

'DTZ is elated to be merging under the prominent Cushman & Wakefield brand. The companies have remarkably complementary skills and reach in different geographies – whether in New York, London or Shanghai, this will be a formidable combination,' said Brett White, who will assume the role of chairman and CEO of the combined company. White added, 'While breadth and depth are important to serve clients, it’s not just about size. It’s also about local expertise and deep customer service, which are strong traits of Cushman & Wakefield and DTZ, and ultimately what will differentiate us going forward.'

White has over 30 years’ experience in real estate, including as CEO of CBRE.

Upon completion of the merger, Carlo Barel di Sant’Albano, current international CEO of Cushman & Wakefield and EMEA CEO, will take a senior global leadership role. John Santora, current CEO of North America at Cushman & Wakefield, will become chief operating officer and chief integration officer and Tod Lickerman, current global CEO of DTZ, will assume the role of president of the global company.