CB RICHARD ELLIS GROUP, INC. COMPLETES ACQUISITION OF TRAMMEL CROW COMPANY
Combined pro-forma 2006 revenues of CBRE set to reach approximately $4.4 billion after acquisition of Trammel Crow Company
Dubai: January 09, 2007 – CB Richard Ellis Group, Inc (NYSE:CBG), the global leading property advisory, has announced completion of its acquisition of Trammel Crow Company (NYSE:TCC) for $49.51 per share of common stock in cash.
The transaction was valued at approximately $2.2 billion, which included approximately $1.9 billion for the purchase of equity, and the balance attributable to transaction and integration costs (approximately $0.2 billion) and the repayment of TCC corporate debt (approximately $0.1 billion).
The acquisition, which was announced in November 2006, expands CB Richard Ellis’ global leadership and strengthens its ability to provide integrated account management and comprehensive real estate services for corporate, institutional, healthcare and government clients.
“This acquisition is in line with our company’s strategic objective of creating the market-leading commercial real estate services firm delivering comprehensive solutions to our clients. The organizations, for which Trammel Crow acts within the Middle East, are exactly complementary to our existing and rapidly expanding client base,” commented Nicholas MacLean, Managing Director of CB Richard Ellis Middle East.
The acquisition makes CB Richard Ellis the first commercial real estate services company to qualify for the FORTUNE 500 list of the largest U.S. corporations. The Company will now have combined pro-forma 2006 revenues of approximately $4.4 billion and 21,000 employees
"This transaction marks a significant milestone in our Company's lOO-year history," said Brett White, President and Chief Executive Officer of CB Richard Ellis. "Adding Trammell Crow Company's talented professionals and proven capabilities to our global platform will enable us to improve our service delivery to clients and continue our drive for excellence."
Bob Sulentic, former President and Chief Executive Officer of TCC and now Group President of CB Richard Ellis, said, "Joining forces with CB Richard Ellis allows us to better serve our clients and provides more career growth and professional development opportunities for our employees.”
CB Richard Ellis concluded its financing for the transaction with a five-year, $1.1 billion tranche a term loan facility, and a seven-year, $1.1 billion tranche B term loan facility. In addition, the Company's existing credit facility was amended to enable the transaction.
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About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2005 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; mortgage banking; investment management; appraisal and valuation; and research and consulting. Please visit our Web site at www.cbre.com.
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