Cassidy Turley to Merge with DTZ Consortium

Cassidy Turley has entered into an agreement with an affiliate of DTZ Investment Holdings to be sold to the consortium by the end of the year.
Joe Stettinius, CEO, Cassidy Turley

Joe Stettinius, CEO, Cassidy Turley

The DTZ investment consortium of TPG Capital, PAG Asia Capital and the Ontario Teachers’ Pension Plan has made a strategic move toward becoming a global CRE player even before its deal to acquire DTZ is complete by reaching an agreement to buy Cassidy Turley.

Cassidy Turley, a leading commercial real estate services provider in the United States, said today it had entered into an agreement with an affiliate of DTZ Investment Holdings to be sold to the consortium by the end of the year. A price for Cassidy Turley, a Washington, D.C.-based company with more than 60 offices in the U.S., was not released.

The consortium should complete its acquisition of global property services firm DTZ from UGL Ltd. of Australia for $1.2 billion in late October. The Cassidy Turley deal should close on Dec. 31, according to a news release.

“Following a period of intensive mutual due diligence, we are confident that this is an excellent cultural fit as well as an opportunity to partner with a global brand,” Joseph Stettinius, Cassidy Turley CEO, said in the release.

The combined company will be branded as DTZ. It will have revenues of more than $2.9 billion and more than 28,200 total employees enabling the firm to “more effectively serve its global clients and compete for new business anywhere in the world.”

“The Consortium is very pleased that DTZ Investment Holdings affiliate has reached an agreement to acquire Cassidy Turley after closing of the DTZ transaction. Cassidy Turley is a leading real estate services business in the U.S. and will complement DTZ’s existing very strong businesses in Asia and Europe as well as DTZ’s existing U.S. businesses,” Ben Gray, Managing Partner, Asia, for private equity firm TPG, stated.


Brett White

Gray said Brett White, former CEO of CBRE Group, an investor in the consortium, will be joining the Board of Directors and become executive chairman of the new company in March 2015.

Tod Lickerman will continue in his role as Global CEO of DTZ and Stettinius will become CEO of the Americas.

Stettinius will work with White and Lickerman to “develop a plan to integrate the Americas business and create an innovative market leading platform,” according to the release. The combination is expected to present only a “minimal overlap in leadership, infrastructure and market coverage in the U.S.”

DTZ’s existing Americas Facilities Management business will remain part of DTZ’s Global Occupier Services organization.

“I want to recognize all of our professionals for their hard work and performance,” Stettinius said in the release. “Their focus on operational excellence and client service as well as our clients’ continued confidence in our people and platform positioned us for this opportunity to combine with DTZ. The combined companies will create a game-changing organization – not only for us but for the entire industry.”

Challenger Capital Group (whose M&A Advisory team is now part of Fifth Third Securities, Inc.) and J.P. Morgan Securities L.L.C. acted as joint financial advisors. Buchanan Ingersoll & Rooney P.C. acted as legal advisor.

(Update to follow.)