San Francisco-based BLUM Capital Partners LP last month agreed to a lead a $750 million buyout of real estate services company CB Richard Ellis, which would value the company at $16 per share.
The deal is financed with $400 million in senior debt provided by Credit Suisse First Boston and $75 million in mezzanine financing will be supplied by DLJ Investment Funding Inc.
BLUM, along with other private equity investors, including, Thayer Capital Partners and Freeman Spogli & Co., will commit $275 million in equity for the deal.
The buyout firms proposed to acquire the company last November for $15.50 per share (Buyouts Dec. 4, 2000, p.12). Claus Moller, a managing partner at Blum Capital, said: “We believe CB is well positioned to grow as it leverages its global platform and its 100 year-old franchise to take advantage of corporate outsourcing and cross selling opportunities. As an example, CB is rapidly expanding its $10 billion investment management business. We look forward to working closely with management to pursue both organic growth and acquisition opportunities.”
CB Richard Ellis, whose services include property sales and leasing, property management, mortgage banking, investment management, appraisal/valuation, research and consulting, had revenues of $1.3 billion last year.
In an interview, Ray Wirta, chief executive officer of CB Richard, said: “The new capital resources, broad employee equity ownership and long-term support of first class private equity investors positions the company well for the future.”
The deal, which is expected to close late in the second quarter, must still be approved by shareholders.