The combined firm will be the clear leader in the UK and also in continental Europe, with greatly enhanced strength and depth of service capabilities across the region that will directly benefit the clients of both companies.
The transaction is expected to close on 31 May 2011. Under its terms, Jones Lang LaSalle will pay consideration of £197 million ($319 million) to the partners of King Sturge, with £98 million in cash at closing and the balance paid out in cash over five years.
All 43 King Sturge offices and businesses across Europe, including 24 in the UK, will become part of Jones Lang LaSalle and will operate under the Jones Lang LaSalle brand. Integration of business lines and teams, and the full rebranding of all business activities, will begin immediately.
Christian Ulbrich, Jones Lang LaSalle Chief Executive Officer for EMEA said: “The obvious strategic and cultural fit between Jones Lang LaSalle and King Sturge makes this a logical and very attractive proposition for both firms. It gives us a scale and depth of expertise that will make our client service delivery capabilities second to none in both the UK and continental Europe.”
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Richard Batten, Joint Senior Partner, King Sturge added: “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. We truly believe that we will be better together. The ability to operate on a global platform, and the opportunities that this will provide, is great news for all our staff and clients.”
The merger will deepen mutual strengths and existing leadership positions. It will also bolster overall service delivery capabilities: the powerful combined Capital Markets team will provide clients with unparalleled access to international capital flows through Jones Lang LaSalle’s global platform; the merger accelerates each firm’s strategic priority to lead in targeted local and regional markets; Jones Lang LaSalle leads the London agency and investment markets and King Sturge is a leading force in the UK regional markets; the combination will add significant depth and scale to a range of services, including industrial, global logistics and retail; the firm’s presence in Europe will broaden significantly in the rapidly growing Central, Eastern and South-Eastern European markets.
Andrew Gould will serve as Chief Executive of the merged business in the UK. Richard Batten will assume the role of UK Executive Chairman.
Andrew Gould commented: “We are tremendously excited to combine these two outstanding firms. Each has a reputation for excellence based on teamwork and putting clients first. Our new leadership team is already in place, consisting of senior directors from both firms, and their immediate focus will be to begin to realise the extraordinary potential of the merger for our clients and colleagues.”
The merged business operates in 70 EMEA markets across 30 countries employing 5,300 people providing integrated real estate services worldwide to investor, owner and occupier clients. The UK business will have 2,700 employees across 34 offices.
(GK/KMcA)
