Global commercial property company Jones Lang LaSalle (JLL) has announced that it will merge with international real estate consultancy King Sturge.
With significantly improved strength and depth of service capabilities across the region, the merged company will be the clear leader in the UK, as well as Europe.
Under the deal, JLL will pay King Sturge of £197 million (US$319 million), with £98 million in cash upon closing and the balance in cash over five years.
It also said that all 43 King Sturge businesses and offices across Europe, including 24 in the UK, will become part of JLL and will operate under the JLL brand.
“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,” said Christian Ulbrich, Chief Executive Officer for EMEA at JLL.
“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,” noted Richard Batten, Joint Senior Partner of King Sturge.
The merger will imply that the merged Capital Markets team will provide clients with access to international capital flows through JLL’s global platform. It also “accelerates each firm’s strategic priority to lead in targeted local and regional markets” and “add significant depth and scale to a range of services, including industrial, global logistics and retail.”
It also implies that the company’s presence in Europe will expand significantly in the fast growing Central, Eastern and South/Eastern European markets.
Andrew Gould will act as Chief Executive of the combined business in the UK, while Richard Batten will take on the role of UK Executive Chairman.
“We are tremendously excited to combine these two outstanding firms. Each has a reputation for excellence based on teamwork and putting clients first,” Andrew Gould commented.
“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 deal is expected to close today.
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