UGL Limited (ASX: UGL) has announced that it has successfully completed the acquisition of all of the trading operations of global real estate services company, DTZ for £77.5 million (approx. 90 million or AU $119 million) cash from the administrator of DTZ.
DTZ was placed into administration in the UK immediately prior to the acquisition by UGL under a pre-pack transaction, which was signed and completed simultaneously. All of the trading operations were transferred on a going concern basis and continue to trade normally. UGL acquired DTZ following an appropriate due diligence process.
The acquisition of DTZ will transform UGL's property services business into one of the world's largest, integrated end-to-end providers of property services, operating across all key geographic regions. The acquisition of DTZ broadens UGL's property services offering and enhances its geographic footprint across Asia, the UK, Europe, Middle East and Americas.
The combination of UGL Services and DTZ will have annual revenues of AU $1.9 billion making UGL Services one of the largest participants in the global property services sector.
Following the acquisition of DTZ, UGL will have combined annual revenues of AU $5.1 billion, approaching 53,000 personnel5 worldwide operating in around 240 offices in 43 countries and one of the broadest vertically integrated property services offerings globally.
With its beginnings in the UK in 1784, DTZ is a leading real estate services company operating in 145 cities across 43 countries. DTZ's business consists of six service lines: Occupational & Development Markets, Professional Services, Valuation, Investment Agency, Investment & Asset Management and Consulting & Research. DTZ holds a market leading position in property services in Asia and maintains a top five position in the UK.
DTZ is one of the world's largest and most respected names in property valuation undertaking valuations in excess of AU $380 billion annually. DTZ holds the number one position in valuations in China and is top three in the UK and key markets in Europe. It also has a leading research capability with a global team providing research on commercial property markets worldwide.
Further, DTZ's real estate investment and asset management businesses are best in class, with AU $10 billion in real estate assets under management. The investment management business has the best performance track record of any UK fund manager and the asset management business was recognized as the European Property Manager of the year in 2009 by European Pensions.
UGL's Managing Director and CEO, Richard Leupen said: "Combining UGL and DTZ will create one of the world's largest property services businesses by revenue and capability allowing us to broaden our existing property services offering across a global footprint.
"DTZ's broad geographic reach will transform our ability to deliver an integrated full service offering to clients by enhancing our presence and capability in key growth markets such as Asia. We see significant opportunities for growth in Asia, particularly in China, where DTZ holds the leading market position in property services with 1,300 personnel in 18 cities.
"The global trend to outsourcing is continuing and our clients are increasingly demanding an integrated end-to-end service offering which can be delivered by a single solutions provider across their entire global property portfolio. With a comprehensive property services offering and a total global workforce of nearly 40,000 personnel, this transaction will allow UGL to capitalize on this growth opportunity," Leupen added.
"DTZ is a highly regarded business with a well-recognized and respected brand, having advised clients for over 225 years. We will continue to build on DTZ's reputation for service excellence and grow our combined business by leveraging the quality and experience of our talent pool and expanded capabilities. The acquisition of DTZ is another key step in UGL's journey to be the emerging leader in global property services"
DTZ
