DTZ is kicking off on a new era of growth following the completion of its sale to a TPG-led private equity consortium.
The property services firm will continue to operate as DTZ following its sale by Australian engineering group UGL to TPG Capital, PAG Asia Capital and Ontario Teacher’ Pension Plan for A$1.2bn (£675m) which completed today.
Brett White, former chief executive of CBRE Group, will begin serving as full-time executive chairman of the new company in March 2015.
Tod Lickerman will continue in his current role as global chief executive of DTZ and report to White.
“DTZ now has the independent governance, strong capital base and speed-to-market of a private company, which will allow us to grow and serve our clients’ ever-changing needs,” said Lickerman.
“Today’s dynamic business environment holds both opportunities and challenges for our clients. DTZ is a progressive partner who understands their needs and can deliver tailored solutions wherever they do business, while offering the client experience of a smaller, more nimble and more tenacious organisation.”
“DTZ’s new capital structure and strong financial backers better positions DTZ to make continued investments to expand its capabilities and offer clients a complete suite of services in every major market around the world.”
The completion of the deal will see the formerly troubled firm embark on a growth plan under its new ownership. The first stage of this is the acquisition of Cassidy Turley by an affiliate of DTZ Investment Holding, backed by the TPG & PAG Consortium.
The agreement to acquire the US agent was announced last month. The plan is to combine it with the DTZ business next year after the deal completes in December.
DTZ said the deal would “immediately expand DTZ’s brand and commercial real estate presence in the US”.
The new company will represent $2.9bn of annual revenue and more than 28,200 employees.
As previously announced, Joseph Stettinius Jr, Cassidy Turley’s chief executive, will become chief executive of the Americas, reporting to Lickerman.
Speaking on behalf of the TPG & PAG Consortium, TPG’s Ben Gray said: “The combination of DTZ’s strong businesses in Asia and Europe, its existing businesses in the US and Cassidy Turley’s market-leading business in the US will create a global, full-service property services company that will be in the sector’s top three. And we will have an executive team equal to anyone in the world.”
Lickerman added: “Our strategy is to grow better, not just bigger. We’ll do this by continuing to foster a unique and progressive culture, and by converting new capabilities into strategic advantages for our clients and exciting professional opportunities for our people.”
