DTZ is set for a new stage of growth following the announcement of a A$1.2bn (£675m) takeover by a three-strong private equity consortium.
The property services firm’s EMEA chief John Forrester said its two-and-a-half-year period of ownership by UGL “was a positive time in the evolution of DTZ” leading to today’s binding offer from TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.
He said: “UGL bought all the assets of DTZ and put their own balance sheet behind them to manage an extremely successful turnaround.
“Importantly, it boosted the global platform with additional skills and services, which is without doubt behind the attraction of DTZ to investors and clients today.”
A statement from the Sydney-headquartered services firm released on the Australian Stock Exchange on Monday confirmed the sale agreement, which it said would net it process of around A$1bn-A$1.05bn.
UGL said: “The TPG and PAG consortium is best placed to fund and support the strong future growth potential of DTZ as it becomes one of the dominant global property services players.”
The consortium brings together the US-based TPG with Asia-focused alternative investment manager PAG, which has $10bn (£5.9bn) in capital under management, and the Canadian pension fund, giving an indication of the international attraction of the business.
Completion of the cash deal is expected around the end of September 2014, with UGL entering into a transition services agreement to facilitate business continuity and the orderly transfer of DTZ to the consortium.
The new company, which is expected to be swiftly taken private, will be led by current DTZ global chief executive Tod Lickerman, while former CBRE group chief executive Brett White is expected to take up a role as executive chairman in March when his non-compete agreement with CBRE, which he left at the end of 2012, expires.
The rest of the group’s executive board, which includes Forrester as EMEA chief executive, is expected to remain unchanged.
UGL appointed Goldman Sachs to undertake a strategic review of DTZ and to consider a prospective demerger in March last year, which led to unsolicited bids for the property services firm.
Reports in May said TPG emerged as the sole bidder for DTZ following a bidding deadline of 16 May. The US private equity firm was reported to be the only company from a four-strong shortlist to make a binding offer for the property services arm of UGL.
bridget.o’connell@estatesgazette.com
