JLL and King Sturge to merge

COMMERCIAL property services firm Jones Lang LaSalle has moved for rival King Sturge in a £197m deal, it was announced today.

Jones Lang LaSalle, which has an office iat Chancery Place in Manchester, is paying the sum to property consultancy King Sturge’s partners.

All 43 King Sturge offices, including its Manchester office, will become part of Jones Lang LaSalle and will operate under the Jones Lang LaSalle brand. It is likely that some integration of existing offices will also take place.

The deal will see JLL pay £98m in cash now, with the balance settled over the next five years. It will complete on May 31 and the rebranding programme will begin immediately.

Jones Lang LaSalle said the combined firm would be “the clear leader in the UK 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”.

Andrew Gould will serve as chief executive of the merged business in the UK. Richard Batten will assume the role of UK executive chairman.

Christian Ulbrich, Jones Lang LaSalle’s chief executive for Europe, the Middle East and Asia, said: “The obvious strategic and cultural fit between Jones Lang LaSalle and King Sturge makes this a logical and very attractive proposition for both firms.

Peter Lees, Head of Jones Lang LaSalle’s Manchester office, said: “”This merger is very exciting and positive news for our clients and our business in Manchester. 

“Bringing our two firms together is a highly complementary strategic and cultural fit.  We will retain our shared focus on delivering great client service ensuring we can fulfil their needs by providing a comprehensive range of services.”

David Lathwood, managing partner of King Sturge’s UK Regions operations, who is based at King Sturge’s No.1 Piccadilly Place offices in Manchester, said: “The combined business has substantially increased its strength and potency not only in Manchester, but Birmingham, Edinburgh, Glasgow and Leeds while Jones Lang LaSalle gains new offices in Bath, Bristol, Cardiff, Exeter, Liverpool, Newcastle-upon-Tyne, Nottingham, Southampton and Plymouth.”

The merged business will operate in 30 countries and employ 5,300 people – 2,700 of whom will be based in the UK.