This article is from the Australian Property Journal archive
IN a deal set to create a new powerhouse in the United States, Jones Lang LaSalle has mounted a $US613 million takeover for the Staubach Company, a leading real estate services firm specialising in tenant representation.
The combined firm will operate under the JLL brand. The transaction does not include Staubach Retail Services or Cypress, Staubach’s investment development business, both of which will continue to operate under license agreements.
JLL’s chief executive Colin Dyer said the transaction is expected to be accretive to earnings per share in 2009 and beyond.
“Merging our businesses reinforces two of our global growth priorities, building our position in key US local markets and strengthening our corporate services business by introducing Staubach clients to our global Corporate Solutions capabilities,” he added.
Staubach leadership will hold key positions within the combined organization. Roger Staubach, who founded Staubach 31 years ago, will join the JLL board and will serve in the new role of executive chairman, Americas. Greg O’Brien, currently Staubach’s chief executive will be the chief executive of Brokerage, Americas. Whilst John Gates, currently Staubach’s president will serve as president of brokerage, Americas.
Both O’Brien and Gates will join the firm’s Americas Executive Committee, which is headed by Peter Roberts, JLL’s chief executive of Americas.
“In today’s global economy when so many of our clients want an international platform, this merger gives us the opportunity to provide those services seamlessly, as one team working together,” Staubach said.
The combined firm will have 33,700 employees around the world and 11,500 in the Americas with the addition of more than 1,000 Staubach employees. The transaction also will add 14 new corporate offices to JLL’s 54 in the Americas, bringing the total corporate offices in the Americas to 68 and globally to 184.
In addition to this significant transaction, JLL has made 28 acquisitions since 2006, including the recently completed Kemper’s acquisition in Germany.
Dyer said by strengthening the firm’s tenant representation business, this transaction adds to the diversification of its business by both service line and geography and bolsters the firm’s ability to offset the severe restrictions in the availability of credit in the United States and certain European countries.
“This diminished availability of credit has significantly reduced the volume and pace of commercial real estate capital markets transactions starting in the second half of 2007 particularly in the US, the United Kingdom and Germany, a trend that we expect to continue at least through 2008.
“This transaction also supports the firm’s diversification by offering significant opportunity to serve global clients and cross sell the broad range of services on a global basis,” he concluded.
Australian Property Journal
