DTZ has paid £24.2m for a 50% interest in privately owned US property consultant Rockwood Realty Associates.
The group said the acquisition from existing members of Rockwood, which is headquartered in New York, would complement its existing relationship with the Staubach Company in occupier services.
It added that “DTZ Rockwood” would significantly enhance its real estate services offering, giving its clients better access to direct investment and capital raising opportunities in North America.
For the year ended 28 February 2006, Rockwood reported revenue of $43.3m (£23.3m) and EBITDA of $9.1m (£4.9m).
Rockwood, a limited liability company employing 93 staff, was formed in 1991 by John Magee, co-chairman and co-chief executive.
Dan McNulty, who also serves as co-chairman and co-chief executive, joined in 1993.
Magee and McNulty, the two largest shareholders in the company, will continue jointly to manage the firm.
It has offices in New York, Chicago, Dallas, Kansas City, Miami, Palm Beach Gardens, Orlando and Mexico City.
The initial consideration will be satisfied by the issue of around 743,000 shares in DTZ, which represent 1.4% of the group’s enlarged share capital, and the payment of £19.6m in cash.
DTZ will make a deferred payment to Rockwood’s members of up to £1.9m to be satisfied in shares, dependent on EBITDA in the year ending February 2007.
In addition, DTZ will make a further deferred payment to Rockwood’s members three years from the closing of the transaction calculated as two times average EBITDA during the two year period ending February 2009.
References: EGi News 10/05/06
