Cassidy Turley, a U.S.-based commercial real estate services provider, has agreed to merge with DTZ Group. The transaction, the value of which was not disclosed, is being backed by an investor group made up of Ontario Teachers’ Pension Plan, PAG Asia Capital and TPG Capital. Cassidy Turley said the combination will create a global, full-service commercial real estate services company under the DTZ brand with revenue of more than US$2.9 billion. Ontario Teachers, PAG and TPG are in the process of closing their US$1.1 billion acquisition of Chicago’s DTZ by Oct. 31. The merger is expected to be completed by the end of December.
Cassidy Turley Agrees to be Acquired by DTZ Investment Consortium – TPG, PAG Asia Capital and Ontario Teachers’ Pension Plan
Cassidy Turley and DTZ to Combine Under New Ownership
September 22, 2014
WASHINGTON, DC – 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.
Advisors to Cassidy Turley
Challenger Capital Group (whose M&A Advisory team is now a part of Fifth Third Securities, Inc.) and J.P. Morgan Securities LLC acted as joint financial advisors. Buchanan Ingersoll & Rooney PC acted as legal advisor.
TPG is a leading global private investment firm founded in 1992, with $66 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings. In North America, some of TPG’s best known corporate and real estate investments have included Burger King, Northern Tier Energy, Petco, J. Crew, Taylor Morrison Home Corporation (NYSE:TMHC), ST Residential, Hotwire, Neiman Marcus and Chobani. TPG has been active in Asia for 20 years and has completed major investments in Shenzhen Development Bank, China Grand Auto and BTPN. TPG has also been very active in Australia with investments in Healthscope, Myer Department Stores and Inghams. For more information visit www.tpg.com.
PAG is one of the largest Asian based alternative investment managers with funds under management across Private Equity, Real Estate and Absolute Return strategies. PAG currently has US$11 billion in capital under management, with over 300 staff and offices in Hong Kong, Shanghai, Tokyo, Beijing, Sydney, Singapore, Seoul, Shenzhen, and Delhi . PAG Asia Capital (“PAGAC”), the private equity strategy of PAG, is currently investing its US$2.5 billion pan-Asian buyout fund and its current portfolio includes control and structured investments across the financial services, pharmaceuticals, automotive services and consumer retail sectors. In addition to the extensive investment experience in private equity, PAG has a solid track record in real estate, completing over 500 real estate related transactions throughout Asia with total investment value in excess of US$20 billion. For more information visit www.pagasia.com.
With $140.8 billion in net assets as of December 31, 2013, the Ontario Teachers’ Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund’s assets and administers the defined benefit pensions of 307,000 active and retired teachers in Ontario. For more information, including our annual reports from 2013 and previous years, visit
www.otpp.com. Follow us on Twitter @OtppInfo.
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information.
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