C&W sold for $563m.

Italian investment group IFIL has bought a 67.5% stake in Cushman & Wakefield for $563 million.

The deal--expected to be finalized in the New Year--will give the investment group controlled by Italy's powerful Agnellis family an option to acquire a further 8.1% of the equity capital from Cushman & Wakefield management and employees, who will retain up to 32.5% of the company's equity.

Following regulatory approval, the new Cushman & Wakefield Board of directors will consist of Carlo Sant'Albano, Alessandro Potesta, Michael Bartolotta and Pierre Martinet, from IFIL, and Bruce Mosler, John Cushman and John Santora, from Cushman & Wakefield.

"Securing IFIL as our partner puts Cushman & Wakefield in a position to take advantage of a consolidating industry to push forward with our strategic growth plan," said Mosler

"IFIL's knowledge of the regions and business areas we are targeting, its experience in the sector we serve and a transaction structure that assures Cushman & Wakefield of strong financial flexibility will put us in an even more powerful position to accelerate our plan for growth."

Mosler told a press conference that the deal would leave C&W as the only major firm not pressured by heavy debt and, indeed, the cash influx will give the firm the breathing room it needs to try to continue to diversify its services from primarily brokerage to the more lucrative and complex specialized corporate operations demanded of today's global investors and tenants.

It may also give Cushman & Wakefield an opportunity to catch up to rivals CBRE and Jones Lang LaSallle, which are both reaping the rewards of operating as diversified public companies.

IFIL's acquisition will be primarily financed with its existing cash resources with no additional leverage assumed by Cushman & Wakefield, ensuring that it retains complete financial flexibility with respect to its future growth objectives.

For IFIL, the investment represents an opportunity to acquire a majority position in what is widely regarded as the commercial real estate sector's foremost brand and a chance to diversify its own assets across a range of sectors, geographies and currencies.

It provides Cushman & Wakefield with a new long-term shareholder with a proven track record of supporting management teams of its portfolio companies as they define and implement growth and development plans.

The continuity will give C&W the chance to continue to build its business in Europe and the Asian-Pacific with the aim of generating some 50% of its revenues from outside the US by 2011 and increasing its presence in the investment services sector.

IFIL vice chairman John Elkann gave Mosler his full vote of confidence when the deal was announced Tuesday saying, "Under his leadership, Cushman & Wakefield has successfully developed its business and brand and we're excited at the prospect of partnering with this team for the company's next growth phase.

"As a leader in a growing, global services sector, Cushman & Wakefield is precisely the kind of company we've been looking for as we continue diversifying our investments."

IFIL will replace Rockefeller Group International, Inc., the global property development and investment firm, as controlling shareholder of Cushman & Wakefield. Rockefeller, a wholly-owned subsidiary of Mitsubishi Estate Company Ltd., bought Cushman & Wakefield in April of 1976.

Jonathan D. Green, president and chief executive officer of The Rockefeller Group, commented, "After 30 years, we are pleased and proud to entrust the Cushman & Wakefield brand to IFIL, as the Rockefeller Group focuses on its strategy to expand its real estate development and investment management businesses."

Green said IFIL was the perfect partner to support Cushman & Wakefield in the company's quest to fulfill its potential as one of the greatest real estate services companies in the world.

"Having worked closely with the management team leading Cushman & Wakefield, I am confident that this partnership with IFIL will herald the beginning of an era of even greater success for Cushman & Wakefield," he added.

Last year, Cushman & Wakefield negotiated $69 billion in commercial property leasing, sale or financing transactions and valued more property than any firm in the world.

The firm has 430 million square feet of property under management, making it one of the largest global property managers. In 2005, Cushman & Wakefield launched its Fast Forward growth strategy to restructure its business, diversify its services and expand its geographic reach.

In the past two years two years it has consolidated its position in Mexico, acquired its Russian and Canadian affiliates and announced plans to open an office in Finland.

IFIL's financial advisor on this transaction was Perella Weinberg Partners LP. It was also assisted by Ernst & Young LLP. The Rockefeller Group was advised by JPMorgan, and Cushman & Wakefield was advised by Citigroup Corporate & Investment Banking.

Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisers to IFIL, while legal advisers to The Rockefeller Group were Latham & Watkins LLP, and Cushman & Wakefield was advised by Millbank Tweed.

The sale implies an enterprise value for Cushman & Wakefield of $975 million and values the equity capital of the company at $834 million.