CHICAGO ― Global commercial real estate firm Jones Lang LaSalle has announced it will merge with international property consultancy King Sturge. The combined firm will be the clear leader in the United Kingdom and also in continental Europe, with greatly enhanced strength and depth of service capabilities across the region that will directly benefit the clients of both companies.
Under its terms, Jones Lang LaSalle will pay consideration of $319 million to the partners of King Sturge, with $161 million in cash at closing and the balance paid out in cash over five years.
All 43 King Sturge offices and businesses across Europe, including 24 in the United Kingdom, will become part of Jones Lang LaSalle and will operate under the Jones Lang LaSalle brand. Integration of business lines and teams and the full rebranding of all business activities will begin immediately.
“The obvious strategic and cultural fit between Jones Lang LaSalle and King Sturge makes this a logical and very attractive proposition for both firms,” said Christian Ulbrich, Jones Lang LaSalle CEO for EMEA. “It gives us a scale and depth of expertise that will make our client service delivery capabilities second to none in both the U.K. and continental Europe.”
“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,” said Richard Batten, Joint Senior Partner, King Sturge. “We truly believe that we will be better together. The ability to operate on a global platform, and the opportunities that this will provide, is great news for all our staff and clients.”
The merger accelerates each firm’s strategic priority to lead in targeted local and regional markets.
Jones Lang LaSalle leads the London agency and investment markets and King Sturge is a leading force in the UK regional markets.
The combination will add significant depth and scale to a range of services, including industrial, global logistics and retail.
The firm’s presence in Europe will broaden significantly in the rapidly growing Central, Eastern and South-Eastern European markets.
Andrew Gould will serve as CEO of the merged business in the United Kingdom. Richard Batten will assume the role of United Kingdom executive chairman.