US firm takes 60% stake in 75-year-old consultant
CBRE has completed its 60% purchase of Turner & Townsend for £960m, the US firm announced yesterday.
The company, which is listed on the New York stock exchange, said the deal values T&T at £1.6bn.
In its statement, CBRE added: “The transaction preserves Turner & Townsend’s existing leadership team, heritage, operational independence and partnership structure, which will hold the remaining 40% ownership interest.”
Speaking about the move, T&T chairman and chief executive Vince Clancy said: “As asset classes evolve and the world transitions to net zero, clients require even greater sector specialization and industry insight to drive value and unlock opportunities. CBRE and Turner & Townsend will meet this need by aligning our skillsets, providing access to a global talent pool of more than 16,000 program, project and cost managers as well as the industry’s largest repository of project performance data.”
See also>>The deal with CBRE has been lauded as a triumph but the difficult questions now start for T&T
The deal was first announced at the end of July with the firm’s 106 partners due to be handed life-changing sums of money as a result.
It is understood partners have been given some cash upfront but the bulk of the payouts will only be made after three years in 2024 in order to head off an exodus of key staff.
CBRE’s deal for the 75-year-old consultant, which picked up two prizes at last night’s Building Awards, means that on paper each partner stands to pick up an average of £9m.
Some will be paid substantially more than others with several sources previously telling Building that Clancy (pictured), who has been with the business since 1989 and is understood to have the biggest stake, could be in line for as much as £40m.
Here you’ll find all the news, views and analysis of the biggest merger to hit the QS sector in years
More on CBRE’s acquisition of T&T
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T&T and CBRE: A good deal to think about What will T&T’s sale of a 60% stake to CBRE mean for the firm – and the wider industry?
A good match? How T&T and CBRE compare - We measure up the two firms to see how good a fit they are
Windfalls for T&T partners set to be paid in two tranches to prevent exodus of key staff - Amounts to be paid now and in three years’ time
The highs and lows of mergers in the QS world - Former Davis Langdon partner Erland Rendall on what it was like to be swallowed up by Aecom a decade ago and the context of T&T’s deal with CBRE
Former Davis Langdon boss says T&T deal will trigger wave of new firms - Rob Smith expects some of consultant’s staff to strike out on their own, citing worries about loss of independence following CBRE purchase
The deal with CBRE has been lauded as a triumph but the difficult questions now start for T&T - Keeping staff happy and maintaining autonomy at listed US giant are the key challenges facing consultant’s UK bosses
Is Gleeds the next acquisition target? We’d prefer to stay independent - Richard Steer believes T&T and CBRE make a good match, but a merger is not on the horizon for his business
Another historic name falls to US rival as Hoare Lea snapped up by Tetra Tech - Email announcing news sent out by MEP consultant just hours after T&T said Dallas-based CBRE was taking majority stake in firm
Rivals praise T&T’s deal-making skills but sound alarm over loss of independence to CBRE - Described as ‘transformational’ by US giant, T&T’s UK peers have their say on move
CBRE deal to see T&T partners pick up millions - Windfalls will be handed out later this year
CBRE pays £960m for majority stake in T&T - US giant takes controlling interest in 75-year-old business
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