Savills achieved its long-held ambition to establish a major US platform this week with the $260m (£154m) purchase of New York-based Studley.
The transaction price for the privately owned firm, which specialises in tenant representation, will be paid as $130m in cash and shares plus $130m in promissory notes.
The deal, Savills’ largest acquisition, is scheduled to be completed at the end of May, with payments running until 31 May 2017. In its last US move, Savills paid $54m for Granite Partners in 2007.
Studley has 400 commissioned brokers across 25 US offices. After the acquisition, the group will operate in the US under the Savills Studley brand. No Savills branding outside the US will change.
Savills said the acquisition would provide it with a significant US footprint and a strong platform for further growth both in the US and through Savills’ existing businesses in Asia and Europe.
Most of Studley’s revenue is generated by its largest offices in New York City, Washington DC, southern California, ?Chicago and Houston.
For the year ending 31 December 2013, Studley’s turnover was $233m, adjusted EBITDA was $18.4m and profit before tax was $6m (unaudited).
nick.whitten@estatesgazette.com
