Real estate advisory firm Savills has announced the proposed acquisition of Studley, Inc, a leading independent commercial real estate services firm specialising in tenant representation in the United States.
The deal will take place for up to US$260 million, payable in instalments between completion and May 31, 2017 in cash, promissory notes and ordinary shares of Savills.
Founded in 1954 and headquartered in New York City, Studley is a privately owned firm that focuses principally on the needs of tenants to provide clients with innovative tenant representation, project management and transaction advisory services.
The firm employs more than 400 commissioned brokers and 175 support staff in 25 offices across the U.S. Its largest offices in New York City, Washington DC, Southern California (LA), Chicago and Houston collectively represent the majority of Studley’s revenues.
The acquisition of Studley will provide Savills with a significant U.S. footprint and a strong platform for further growth both in the U.S., and through Savills existing businesses in Asia and Europe.
It will also provide Savills with a strong platform in the U.S. from which it can continue to grow its business. It will also leverage and strengthen Savills global platform, including its leading transaction advisory, consultancy, property and facilities management and investment management businesses.
After the acquisition, the Group will operate in the U.S. under the Savills Studley brand name and existing Savills branding arrangements will continue for the rest of the world.
Studley’s Chairman and Chief Executive Officer Mitchell Steir, and President Michael Colacino, will both act as alternates on the Savills Group Executive Board. In addition, Mitchell will continue as Chairman and Chief Executive Officer, and Michael as President of Savills Studley.
The merger, which is subject to a vote of Studley stockholders, is expected to close on or around May 30, 2014, subject to the expiration of the notice period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act as well as other customary closing conditions, including Savills satisfaction as to the level of acceptance by Studley shareholders.
Jeremy Helsby, Group Chief Executive of Savills, said: "Studley is recognised for its exceptional tenant representation expertise and is the leading player in markets throughout the United States. The combination of Studley and Savills represents a unique opportunity which not only provides us with a significant platform for growth in the US, but also enhances our offering to clients worldwide allowing us to provide a truly global service.”
Mitchell Steir, Chairman and Chief Executive Officer of Studley, added: “This is a great opportunity for us to build on our strong position in the market and benefit from being part of one of the leading global brands in the industry. We are delighted that we will have a stronger platform to continue our growth with a partner that shares our commitment to exceptional client service.”
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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