DTZ bought by UGL for £77.5m
Published: 05 December, 2011
Parent company enters pre-pack administration to drive deal through
Australian FM company UGL has bought all of the trading operations of DTZ for £77.5m after the stricken property services company entered administration under a pre-pack deal.
The combination of UGL Services and DTZ will have annual revenues of A$1.9bn, with approaching 53,000 personnel in around 240 offices in 43 countries.
UGL’s managing director and CEO, Richard Leupen, said: “Combining UGL and DTZ will create one of the world’s largest property services businesses by revenue and capability allowing us to broaden our existing property services offering across a global footprint."
And DTZ chief executive, John Forrester, said: “The strength of UGL's ownership can give full confidence for a very bright and stable future to DTZ's operations and staff.
DTZ had repeatedly warned shareholders that the sale proceeds would struggle to repay its debts, let alone provide them with any return on their investments. In the event, the £77.5m amounted to less than the company's £106m of borrowings and it was this that made the ignominious pre-pack route a necessity.
