JLL, STAUBACH REACH $613 MILLION MERGER
DALLAS — Jones Lang LaSalle and The Staubach Co. have reached a $613 million agreement to merge operations and will operate under the Jones Lang LaSalle brand. Under the terms of the agreement, Jones Lang LaSalle will pay $613 million, with $123 million in cash and $100 million in stock paid at the transaction close and the balance paid out in cash over five years. The deal also calls for potential earn out payments of up to $114 million that are subject to the achievement of certain performance metrics measured over a period of up to approximately four and one-half years after the closing.
Jim Yoder, managing director and market director for Dallas with Jones Lang LaSalle, said Staubach’s tenant representation was a big draw when discussing a possible merger.
“Where we saw some weakness was in our tenant representation practice, and clearly Staubach has been a leader in Texas and around the country as a tenant representation practice. It was an excellent fit to join forces. Their strengths and our strengths matched up beautifully,” Yoder said.
Paul Whitman, president of Southwest corporate services for the Staubach Co., agreed with Yoder citing continuous growth as the goal.
“JLL has incredible strengths internationally and in other areas of the business that we’re not in,” said Whitman. “Yet, the Staubach Co. brings a significant strength in the brokerage business in the United States. The Staubach team is going to be the brokerage company in the Americas for Jones Lang LaSalle. Everyone that we’ve heard from has said ‘what a great fit.’”
“What it does is unifies a brand around the world,” said Yoder. “JLL will be the brand around the world clients and customers can look to. I think that will be incredibly strong. Staubach’s presence gives our worldwide customers that confidence that when they come to the Americas the brokerage and transaction capabilities will be second to none.”
Roger Staubach, the ex-NFL star who founded the company, will join the Jones Lang LaSalle Board of Directors and will serve in the new role of Executive Chairman, Americas.
“The brokerage side of our operations will operate more like the Staubach Company has operated historically,” said Yoder. “Our presence in the brokerage business will grow tremendously. This is not about cost production or layoffs. This is about growing and putting together two strong companies and making an even stronger organization,” Yoder said.
Whitman reiterated that Staubach’s priority has always been its customers and their needs.
“The industry is a global industry. (Our) every step has been directed by our customers. We have 70 offices around the U.S., but our customers now are saying we need global solutions. We believe JLL is the gold standard in international real estate,” Whitman said.
The deal is expected to close in the third quarter. Staubach Retail and Cypress Equities, which are independent companies, are not included in the transaction.