Cushmanappoints bankers to seek ?1.3bn sale
25 February 2015 | By DavidParsley
Cushman & Wakefield has put itself upfor sale for ?1.3bn.
The global real estate group has appointedGoldman Sachs and Morgan Stanley to look for a private sector buyer, ruling outrecent speculation it could merge with another group such as DTZ or ColliersInternational to form another industry giant alongside CBRE and JLL.
Cushman confirmed the potential saleto Property Week early this morning.
A spokeswoman for the company said: “As isthe normal course of business, both Cushman & Wakefield and EXORcontinually seek ways to further enhance the businesses, create value andfurther accelerate their plans.
“There is currently no transaction todisclose, nor guarantee that such a review may result in any transactioninvolving Cushman & Wakefield.”
Italy’s Agnelli family, which also ownslarge stakes in groups such as Ferrari and Fiat, currently owns 81% of Cushmanthrough its investment vehicle Exor.
The family paid ?364.75m for it initial67.5% stake in Cushman eight years ago and has since boosted that to81%. The firm’s employees hold the 19% of Cushman not owned by theAgnellis.
Cushman, the world’s third-largestproperty services group, recorded pre-tax profit of ?105.15m last year,
A sale would be the latest in an activeperiod for mergers and acquisitions in the property sector. Last year, aventure led by private-equities giant TPG paid ?680m for DTZ and merged it withCassidy Turley.
Meanwhile, Canadian group FirstServiceCorporation revealed plans to spin off its commercial-real-estate unit,Colliers International, as a separate publicly traded company earlier thismonth.
Cushman, which will celebrate its 100thbirthday in 2017, has benefited from the commercial property market’s recoveryand more stable management in the past year following a period of losses andmanagement upheaval during the recession.
In 2009 Cushman posted a ?81.93m loss andwas hit by the departure of a number of top-performing brokers. In 2010,it brought in a turnaround expert Glenn Rufrano as chief executive.
Rufrano improved the firm’s performancebut clashed with Exor’s management and left in 2013. Former Goldman Sachs executive Edward Forst took over aschief executive.