DTZ Buys Cushman & Wakefield for $US2b
Private equity-owned DTZ Group has bought rival property services company Cushman & Wakefield for $US2 billion ($2.5 billion), including cash and liabilities, to create the world’s second largest commercial property services firm in terms of revenue.
The combined firm, to be known as Cushman & Wakefield, will have revenues of over $US5.7 billion, and 43,000 employees, becoming second to market leader, CBRE, and just ahead of rival global heavyweight, JLL.
The incoming chairman and chief executive, the former head of CBRE, Brett White, said the companies would be a “formidable combination” with complementary skills and geographic reach.
In particular, the move will intensify the global battle for corporate property outsourcing, including in Australia, where Cushman & Wakefield, as a late entrant, has had a limited presence.
As revealed by Street Talk, Mr White met lenders for the first time as DTZ executive chairman last month, seeking their support for DTZ’s offer for Cushman & Wakefield.
DTZ will fund the purchase by raising an additional $US1.3 billion in the US Term Loan B market with UBS, JPMorgan, Credit Suisse, and Bank of America Merrill Lynch making up the debt syndicate. The four banks also advised DTZ.
The new loan is on top of its existing $US1 billion of facilities in place. DTZ’s owners, led by global private equity giant TPG, will also tip in equity.
The merged company will have a strong market share position in New York, Los Angeles, Boston, Chicago, San Diego, San Francisco, London, Paris, Benelux, mainland China, Hong Kong, Tokyo, India and Indonesia, and in facilities management in Australia.