Global property adviser DTZ has acquired the business and assets of Donaldsons LLP, the privately owned, UK-based property consultancy, for an initial consideration of £39.8 million (approx. €55 mln), plus deferred consideration of up to £8.8 million (approx. €12 mln).
The transaction will significantly enhance DTZ's comprehensive service offering in much of Europe, particularly in relation to retail property. Donaldsons clients will also benefit through access to the broader client-focused property services of DTZ's pan-European and global platforms. The combined business will fully adopt the DTZ brand name from Autumn 2007.
The combination of DTZ and Donaldsons will reinforce DTZ's position as a top global property consultancy, ranked in the top two in the UK and top three in Europe. The merger will create a pre-eminent retail property adviser and open up Donaldsons retail and development capabilities to DTZ's capital markets strength and mutually reinforce many other practice areas.
All 33 equity partners of Donaldsons will join DTZ, taking up positions as directors across the combined organisation. Martyn Chase, Donaldsons chairman, will chair DTZ's UK Retail Division and oversee the development of DTZ's Retail practice across EMEA. Donaldsons chief executive, Peter Mawson, will take a leading role in achieving the successful integration of Donaldsons with DTZ. Both Martyn Chase and Peter Mawson will join DTZ's EMEA Executive & Strategy Group and its UK & Ireland Executive Committee.
Commenting on the transaction Mark Struckett, group chief executive of DTZ, said: "This transaction marks another significant development for DTZ, our clients and our shareholders. It further enhances our position in Europe as one of the leading global property consultancies. The combination of Donaldsons with DTZ provides an excellent strategic fit, which both increases and diversifies earnings.
"We see close cultural alignment and, while Donaldsons will provide opportunities to develop the combined business across all sectors of the market, the strength that Donaldsons brings in the retail segment is of significant importance to us within the UK and continental Europe. We welcome Donaldsons into DTZ and look forward to combining our activities to provide our collective clients with a truly outstanding breadth and quality of service."
Donaldsons chairman Martyn Chase added: "This transaction represents a tremendous opportunity for both businesses and our clients. For Donaldsons, it enables us to safeguard our market leading position within the retail property sector and also to grow our wider business faster both in the UK and in continental Europe. We look forward to working with DTZ's global platform and enhanced capital markets capability to the benefit of our clients at every stage of the development cycle."