Jones Lang LaSalle Buys King Sturge To Boost European Exposure
May 27 2011 - 08:17AM
Dow Jones News
Jones Lang LaSalle Inc (JLL) said Friday it had agreed to buy
London-based property services company King Sturge for GBP197
million ($319 million) in a deal that will make it market-leader in
the U.K. and continental Europe.
JLL, the world's second-largest publicly traded real-estate
broker, said the merger will give it a greater strength and depth
of service across Europe that will benefit the clients of both
companies.
"The obvious strategic and cultural fit between Jones Lang
LaSalle and King Sturge makes this a logical and very attractive
proposition for both firms," said Christian Ulbrich, JLL's chief
executive for Europe, the Middle East and Africa.
"It gives us a scale and depth of expertise that will make our
client service delivery capabilities second to none in both the
U.K. and continental Europe," he added.
JLL said the rebranding of all 43 of King Sturge's offices and
businesses across Europe, including 24 in the U.K., will begin
immediately.
"This is a coming together of two great companies who are
culturally aligned, with fantastic business synergies, to create
the best firm of property advisers in Europe," said Richard Batten,
joint senior partner at King Sturge.
JLL said it will pay GBP98 million in cash to the partners of
King Sturge at closing, which is expected May 31, with the balance
paid in cash over five years.
JLL said the merged business will operate in 30 countries and
employ 5,300 people across the EMEA region, while the U.K. business
will have 2,700 employees across 34 offices.
JLL shares closed Thursday at $93.12, giving the company a
market capitalization just under $4 billion. The stock has gained
11% since the start of 2011. JLL provides help with sales, leasing
and management of commercial properties.
The deal is another example of consolidation in the sector with
major players looking to expand as the global real-estate industry
recovers.
French property company Saint George Participations earlier this
month said it was in talks to make a possible bid for commercial
property advisor DTZ Holdings PLC (DTZ.LN).
SGP said it was in discussions with BNP Paribas SA (BNP.FR) "in
relation to this matter," with speculation the French banking giant
is looking to merge DTZ with its property services arm, BNP Paribas
Real Estate.
CB Richard Ellis Inc. (CBG) agreed to purchase the lion's share
of the real-estate-investment-management business of Dutch
financial group ING Groep NV (ING) in February. The all-cash
transaction, valued at $940 million, made CBRE the world's largest
publicly traded real estate broker.
-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289;
michael.haddon@dowjones.com
Jones Lang LaSalle (NYSE:JLL)
Historical Stock Chart
From Feb 2024 to Mar 2024
Jones Lang LaSalle (NYSE:JLL)
Historical Stock Chart
From Mar 2023 to Mar 2024