|
|||||||
|
Saturday, September 06, 2008 News
Jones Lang LaSalle is acquiring the Dallas, Texas-based company with $123 million in cash and $100 million in stock paid at the close of the transaction. The remaining balance will be paid out in cash over five years for the outstanding capital stock of Staubach Holdings, Inc. "We are delighted that they have decided to join our company," said Colin Dyer, CEO of Jones Lang LaSalle. "Merging our businesses reinforces two of our global growth priorities, building our position in key U.S. local markets and strengthening our corporate services business by introducing Staubach clients to our global Corporate Solutions capabilities." The new firm will operate under the Jones Lang LaSalle name and does not include Staubach Retail Services or Cypress Equities, Staubach's investment development business, both of which will continue to operate under license agreements. Staubach, who founded the firm in 1977, will join the Jones Lang LaSalle board of directors and will assume the role of Executive Chairman, Americas. "This merger is all about working to be the best. We want to bring the value of what we've built at The Staubach Company to the next level," Staubach said. "In today's global economy, when so many of our clients want an international platform, this merger gives us the opportunity to provide those services seamlessly, as one team working together." Staubach's current CEO, Greg O'Brien, has been appointed CEO of Brokerage, Americas, while John Gates, Staubach's president and COO, will serve as President of Brokerage, Americas. The two will head a newly created business that will set strategic direction in tenant representation and agency leasing. They will work alongside Jones Lang LaSalle's Peter Roberts, currently CEO, Americas. Despite the optimistic outlook of those within the two firms, others in the commercial real estate industry claim the merger doesn't bode well for tenants. According to a press release issued by Chicago-based Cresa Partners, the combination of the two firms has had "a dramatic effect on the commercial real estate industry." The firm alleges that since Staubach is no longer a pure tenant rep firm, it reduces options for many clients who seek exclusively tenant advocacy. "There is an inherent conflict of interest when firms represent both landlords and tenants," said Cresa Partners' Ellen Hanson. "This type of merger is not a surprise; it's an emerging trend in the industry and could have a domino effect with the announcement of more acquisitions in the coming months." The Jones Lang LaSalle/Staubach announcement marks the second major acquisition for JLL. The firm recently acquired Kemper's Holding GmbH, a Germany-based retail company, along with other overseas firms, for more than $134 million. Staubach currently employs more than 1,600 people in more than 70 offices. The firm boasts over 3,000 clients and completed 7,280 transactions in 2007 totaling $28 billion. Jones Lang LaSalle, a company with global revenue of $2.7 billion, has 170 offices worldwide and has a portfolio of approximately 1.2 billion square feet. Filed Under: none E-mail this article to a friend | Printer friendly format| DIGG this| Post to del.icio.us 
Comments on this article
No comments have been posted in the last 15 days! Send us your comments on this article
crefeed.com -- Related Headlines
|
|
|||||||||||||
|
|||||||||||||
