Global property adviser Savills has acquired Granite Partners, a US real estate investment banking firm, for an initial consideration of $54 mln (EUR 40 mln). Seventy-five percent of this sum is payable on completion of the deal. The remainder is subject to a five-year earn-out, with the total payable for Granite capped at $84.6 mln, dependent on the achievement of EBITDA over a two-year future period. In addition to the earn-out clause, long-term incentive arrangements have been put in place to help with employee retention, Savills said.
Global property adviser Savills has acquired Granite Partners, a US real estate investment banking firm, for an initial consideration of $54 mln (EUR 40 mln). Seventy-five percent of this sum is payable on completion of the deal. The remainder is subject to a five-year earn-out, with the total payable for Granite capped at $84.6 mln, dependent on the achievement of EBITDA over a two-year future period. In addition to the earn-out clause, long-term incentive arrangements have been put in place to help with employee retention, Savills said.
Granite is a New York-based real estate investment banking firm owned primarily by its partners. Founded in 1996 by John Lyons and Gerard Mason, the company offers investment sales, debt and equity placement and advisory services focusing on commercial property throughout the US. Following the completion of this deal Granite will be re-branded Savills Granite with immediate effect.
Aubrey Adams, chief executive of Savills, said: 'We are delighted to welcome the management and staff of Granite to Savills Group as our new US acquisition. This is an important development for Savills and is in line with our strategy of having a presence in the key global financial centres and follows on from our major expansion in recent years in Europe and Asia.'
'We have taken our time in finding the right US partner. I am convinced that in Granite we have found an excellent partner that gives us a first-class entrance point into the US market. By entering the US market Savills now has strengthened its presence globally.'
