US-quoted property broker CB Richard Ellis has agreed to a $750m buyout and privatisation. CBRE is the world’s largest quoted property services company.
The buyout vehicle, Blum CB Corp, is backed by Blum Capital Partners, Freeman Spogli & Co and CBRE chief executive Ray Wirta. It is offering CBRE shareholders $16 per share in cash, a 50 cent per share improvement on the original offer made in November. The offer was considered by a special committee, which recommended the offer to the CBRE boards.
Blum CB will raise $400m of senior debt and $75m of mezzanine debt from Credit Suisse First Boston to finance the bid. CSFB will also provide a $100m credit facility. Blum Capital has committed $150m in equity capital for the deal. CBRE employees will have the opportunity to either sell.
