Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Merger or Acquisition (October 2006)
16 slides from Cbre's merger presentation, Oct 31, 2006
Slide 1: Acquisition of Trammell Crow Company Investor Presentation
Acquisition of Trammell Crow Company Investor Presentation October 2006
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements regarding the acquisition of Trammell Crow Company that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, includ
Slide 3: Agenda
Agenda Introduction Shelley Young Director, Investor Relations Transaction Overview & Rationale for Acquisition Brett White President & Chief Executive Officer Financial Aspects of Acquisition Ken Kay Chief Financial Officer Q&A CBRE Management Team
Slide 4: Transaction Overview & Rationale for Acquisition
Transaction Overview & Rationale for Acquisition Brett White, President & Chief Executive Officer CB Richard Ellis
Slide 5: Transaction Overview
Transaction Overview We are pleased to announce that CBRE has reached an agreement to acquire Trammell Crow Company Trammell Crow shareholders will receive $49.51 per share, all cash consideration This is CBRE’s most significant acquisition to date, combining two premier real estate services platfor
Slide 6: Rationale for Acquisition
Rationale for Acquisition A respected and leading industry brand that will add value to our brand Furthers CBRE’s position as the world’s premier commercial real estate services provider Complementary alignment, in particular our strength in Transaction Management is a perfect match with Trammell Cr
Slide 7: The World's Premier Commercial Real Estate Services Provider
2.5x nearest competitor Thousands of clients, more than 85% of Fortune 100 Pro Forma 2006E Revenue of approximately $4.4 billion Pro Forma 2006E EBITDA of approximately $800 million (2) Strong organic revenue and earnings growth #1 commercial real estate brokerage #1 appraisal and valuation #1 prope
Slide 8: US Commercial Real Estate Services Industry Market Share
$24 Billion US Commercial Real Estate Services Industry (1) U.S. Market Share Top 5 = 16.9% Share Further Strengthens Our #1 Position in a Fragmented Market Source: External public filings and management estimates as of 12/31/05. (1) Excluding investment management. The market is large but still hig
Slide 9: Strengthened Management Team
Strengthened Management Team CEO B. White GENERAL COUNSEL L. Midler CFO K. Kay GROUP PRESIDENT B. Sulentic CBREI V. Maddocks AMERICAS C. Frese D&I B. Sulentic EMEA M. Strong ASIA PACIFIC R. Blain
Slide 10: Financial Aspects of Acquisition
Financial Aspects of Acquisition Ken Kay, Chief Financial Officer CB Richard Ellis
Slide 11: Financially Attractive Transaction
Financially Attractive Transaction $3.4 $4.4 29% ($ in billions) 2006E Revenues 2006E EBITDA The transaction is expected to generate incremental percentage earnings per share accretion in the low teens on a Pro Forma 2006 basis (1) . Standalone Pro Forma Combined $0.6 $0.8 33% (1) Includes first yea
Slide 12: Expanded Services Platform
Expanded Services Platform Property and Facilities Management Sales and Leasing $0.3 billion $0.8 billion $2.8 billion 8% 18% [ ]% 2006 CBRE Standalone 2006 Pro Forma Combined Outsourcing Services Revenues Transaction Revenues $2.5 billion 74% 64% Note: Chart does not represent 100% of total revenue
Slide 13: Sources and Uses
Sources and Uses Sources ($ in billions) Amount New Term A Debt $1.2 New Term B Debt 1.0 Total Funds Received $2.2 Uses ($ in billions) Amount Purchase Equity ($49.51 per common share) (1) $1.9 Redeem Existing TCC Corporate Debt 0.1 Transaction and Integration Costs and Fees 0.2 Total Uses $2.2 (1)
Slide 14: Favorable Financing
Favorable Financing New fully committed Term A and Term B Loans used to finance the acquisition Plan to maintain current revolving credit facility and amend existing credit agreement to enable the transaction Favorable interest rates anticipated Tender for 9.75% senior notes, with redemption from op
Slide 15: Q&A
Q&A CB Richard Ellis Management Team
Slide 16: CBRE
CBRE CB RICHARD ELLIS 100: , 15
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