Business
US Acquisition
US Acquisition.
About this update from Savills Plc
[{"type":"text","content":"\n Savills PLC\n01 August 2007\n\n SAVILLS ACQUIRES US FIRM GRANITE PARTNERS LLC\n\n\n\n FORMS FOUNDATION FOR SAVILLS' EXPANSION INTO THE US MARKET\n\n\n\n 1st August 2007\n\n\n\nSavills plc ('Savills'), the international property services company, is pleased\nto announce today that it has acquired Granite Partners LLC ('Granite'), a US\nreal estate investment banking firm. Savills is paying an initial consideration\nof $54.0m, of which 75% is payable on completion. The remainder is subject to a\nfive year earn-out, such that the total consideration payable for Granite is\ncapped at $84.6m, dependent on the achievement of EBITDA over a two year future\nperiod. In addition to the earn-out, long-term incentive arrangements have been\nput in place to help with employee retention. This is being funded from Savills'\ncash balances.\n\n\n\nGranite is a New York-based real estate investment banking firm owned primarily\nby its partners. Founded in 1996 by John D. Lyons and Gerard V. Mason, the\ncompany offers investment sales, debt and equity placement and advisory services\nfocusing on commercial property throughout the US. Granite undertakes\ntransactions in the United States, Canada and the Caribbean basin and has worked\nfor a number of high-profile clients including Babcock & Brown, Blackstone\nGroup, General Electric Capital Corp., Goldman Sachs Archon/Whitehall, Health\nCare Property Investors, Inc., ING/Clarion, JPMorgan and Morgan Stanley.\n\n\n\nProminent transactions undertaken by Granite include the sale of the leasehold\ninterest in the office and retail premises located within Washington D.C.'s\nUnion Station for $160 million; representation of the Lightstone Group in its\n$889m acquisition of Prime Group Realty Trust, a NYSE-listed REIT; and the sale\nof the Enron World Headquarters building in Houston, Texas on behalf of Enron\nCreditors for $50 million.\n\n\n\nGranite currently employs a team of 18 professionals. They have a range of\ndiverse real estate backgrounds and have executed over $21 billion of real\nestate transactions spanning the full range of property types, including office,\nmedical office, retail, multifamily, industrial and hotels. Following the\ncompletion of this deal Granite will be re-branded Savills Granite with\nimmediate effect.\n\n\n\nFor year ended 31 December 2006, Granite's turnover was ...