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UGL closes sale of DTZ to PE consortium.

M2 EQUITYBITES-November 6, 2014-UGL closes sale of DTZ to PE consortium


6 November 2014 - Australian engineering services firm UGL Ltd (ASX:UGL) has wrapped up the sale of its property services unit DTZ to private investment consortium comprising US private equity firm TPG Capital, Hong Kong's PAG Asia Capital and Canadian pension fund Ontario Teachers' Pension Plan (OTPP), DTZ said.

Announcing the agreement in June, UGL has said it would shed the unit for an enterprise value of AUD1.2bn (USD1bn/EUR835.5m).

As a result of the transaction, DTZ will retain its brand, operating as an independent privately-owned property services firm, it said. With a new capital structure and strong financial support, the company is seen as well-positioned to enhance its capabilities and provide a complete suite of services globally, DTZ added. Furthermore, the property services company expect to combine in 2015 with US commercial real estate firm Cassidy Turley Inc, which is itself being acquired by DTZ Investment Holdings. The latter is backed by the consortium of TPG Capital LP, PAG Asia Capital and the Ontario Teachers' Pension Plan.

UGL anticipated the divestment of DTZ to bring net proceeds of between AUD1bn and AUD1.05bn, the vendor has said, adding that it will focus on its engineering, construction and maintenance services business in Australia, New Zealand and South East Asia, while ensuring a strong balance sheet which will allow it to take advantage of growth opportunities.

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Publication:M2 EquityBites (EQB)
Date:Nov 6, 2014
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