A group led by private equity firm TPG Capital is acquiring commercial real estate firm Cassidy Turley. The investment group plans to combine Cassidy Turley with global real estate services firm DTZ Holdings, PLC, which it acquired earlier this year. It would create a company with combined revenues of nearly $3 billion and more than 28,000 employees. The new company would retain the DTZ brand.
Washington, D.C.-based Cassidy Turley has about 60 U.S. offices and is a major player in the Indianapolis commercial real estate market. The firm has about 200 Indiana employees.
The consortium’s deal for DTZ is expected to close October 31, while the Cassidy Turley acquisition is targeted for closing by the end of the year.
DTZ’s global footprint includes 208 offices in 52 countries
September 22, 2014
WASHINGTON, DC – September 22, 2014 – Cassidy Turley, a leading commercial real estate services provider in the U.S., announced today that it has entered into an agreement with an affiliate of DTZ Investment Holdings, backed by TPG, PAG Asia Capital and Ontario Teachers’ Pension Plan (the Consortium that agreed to acquire DTZ), to sell 100% of the equity interests of Cassidy Turley. The agreement is subject to customary closing conditions and is dependent on Cassidy Turley’s combination with the operations of DTZ Group (DTZ) to create a global, full-service commercial real estate services company. The Consortium’s acquisition of DTZ is currently scheduled to close around October 31, 2014. The acquisition of Cassidy Turley is expected to close on December 31, 2014.
DTZ’s full-service capabilities throughout Europe and Asia coupled with Cassidy Turley’s legacy of strong local market leadership and penetration in the U.S. will immediately position the new company as a top global commercial real estate services firm. The combination of Cassidy Turley and DTZ, which will retain the DTZ brand, will create a company with revenues of more than $2.9 billion and more than 28,200 total employees. As a result, the firm will be able to more effectively serve its clients and compete for new business anywhere in the world.
“Following a period of intensive mutual due diligence, we are confident that this combination is an excellent cultural fit as well as an opportunity to partner with a global brand,” said Joseph Stettinius, Jr., Cassidy Turley Chief Executive Officer.
“The Consortium is very pleased that DTZ Investment Holdings affiliate has reached an agreement to acquire Cassidy Turley after closing of the DTZ transaction. Cassidy Turley is a leading real estate services business in the U.S. and will complement DTZ's existing very strong businesses in Asia and Europe as well as DTZ's existing U.S. businesses,” said Ben Gray, Managing Partner, Asia, TPG.
“We are excited that Brett White, former Chief Executive Officer of CBRE Group, is investing in the acquisition alongside the Consortium and will be joining the Board of Directors once the DTZ transaction is completed, before becoming Executive Chairman of the new company in March 2015. In addition, we are pleased Tod Lickerman will continue in his current role as Global Chief Executive Officer of DTZ, while Joe Stettinius will become Chief Executive of the Americas,” added Mr. Gray.
A combination with DTZ presents a minimal overlap in leadership, infrastructure and market coverage in the U.S. Joe Stettinius will work in partnership with Tod Lickerman and Brett White to develop a plan to integrate the Americas business and create an innovative market leading platform. DTZ’s existing Americas Facilities Management business will remain part of DTZ’s Global Occupier Services organization.
“I want to recognize all of our professionals for their hard work and performance. Their focus on operational excellence and client service as well as our clients’ continued confidence in our people and platform positioned us for this opportunity to combine with DTZ. The combined companies will create a game-changing organization – not only for us but for the entire industry,” added Mr. Stettinius.
Source: Cassidy Turley