CB Richard Ellis Group Inc. (CBRE), a Los Angeles-based commercial real estate services firm, announced on Oct. 31, 2006, that it had entered into a definitive agreement to acquire Trammell Crow Co., a Dallas-based provider of building and project management, and development and investment services. According to a release issued by CBRE, the acquisition will expand the company’s global leadership and strengthen its ability to provide integrated account management and outsourcing solutions.
“Our strategic objective has long been to create the market-leading commercial real estate services firm delivering comprehensive solutions to our clients. Well-targeted acquisitions have played a pivotal role in our strategy,” says Brett White, president and chief executive officer, CBRE. “With the acquisition of Insignia in 2003, we achieved preeminence in our transaction business. Now the acquisition of Trammell Crow Co. creates the best-in-class corporate outsourcing and institutional property management business, and further augments our transaction business. Trammell Crow Co. is one of the premier service companies in our industry, with a rich history, dedicated employees and strong management, a stellar client base, and core competencies that are highly complementary to our own.”
With approval from Trammell Crow Co.’s shareholders and federal regulatory agencies, the deal is expected to close late this year or early next year. The transaction is valued at approximately $2.2 billion, or $46.51 per share of common stock in cash. Once combined, the mega-company will tally revenues of approximately $4.4 billion and have 21,000 employees.
According to Robert Sulentic, Trammell Crow Co.’s chairman and chief executive officer, the company believes the merger will be mutually beneficial for clients and shareholders. “We are committed to providing outstanding value for our shareholders, and this combination accomplishes that objective. Our shareholders will receive value through the purchase of their shares at a very attractive price. We also believe our clients will benefit from the capabilities and resources of this expanded global platform.”
For more information on the acquisition, visit (www.trammellcrow.com) or (www.cbre.com).