Jones Lang LaSalle Inc said Friday it had agreed to buy London-based property services company
King Sturge for GBP197 million ($319 million) in a deal that will make
it market-leader in the U.K. and continental Europe.
JLL, the world's second-largest publicly traded real-estate broker, said
the merger will give it a greater strength and depth of service across
Europe that will benefit the clients of both companies.
"The obvious strategic and cultural fit between Jones Lang LaSalle and
King Sturge makes this a logical and very attractive proposition for
both firms," said Christian Ulbrich, JLL's chief executive for Europe,
the Middle East and Africa.
"It gives us a scale and depth of expertise that will make our client
service delivery capabilities second to none in both the U.K. and
continental Europe," he added.
JLL said the rebranding of all 43 of King Sturge's offices and
businesses across Europe, including 24 in the U.K., would begin
immediately.
"This is a coming together of two great companies who are culturally
aligned, with fantastic business synergies, to create the best firm of
property advisers in Europe," said Richard Batten, joint senior partner
at King Sturge.
JLL said it will pay GBP98 million in cash to the partners of King
Sturge at closing, which is expected May 31, with the balance paid in
cash over five years.
(Jens J. Moller Madsen)
Jens J. Moller, director general and partner at King Sturge for central and east Europe, said the merged business would operate in 30 countries and employ
5,300 people across the EMEA region, while the U.K. business would have
2,700 employees across 34 offices.
JLL shares closed Thursday at $93.12, giving the company a market
capitalization just under $4 billion. The stock has gained 11% since the
start of 2011. JLL provides help with sales, leasing and management of
commercial properties.
The deal is another example of consolidation in the sector with major
players looking to expand as the global real-estate industry recovers.
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