Exor Looks to Sell C&W Stake

NEW YORK CITY—Cushman & Wakefield, now under the control of Italy's Agnelli family, is being put up for sale, according to published reports. Citing people said to be familiar with the matter, the Wall Street Journal and Bloomberg Business reported Tuesday evening that Exor SpA, the Agnelli family's investment group, has approved the hiring of Goldman Sachs and Morgan Stanley to help find a buyer for its 81% controlling stake in the world's third-largest commercial real estate services firm, which analysts have said could fetch $2 billion in the current market.

The Agnellis, who paid $565.4 million in 2007 for what was then a 67.5% interest in the firm, are said to prefer a privately held buyer. Furthermore, the family is said to be unwilling to sell to a direct competitor. Such a stipulation would rule out TPG Capital and BGC Partners, both of which own large CRE brokerages, as potential buyers, as well as a merger with a standalone firm such as CBRE Group.

A spokesman for C&W tells GlobeSt.com that “as is the normal course of business,” both his company and Exor “continually seek ways to further enhance the businesses, create value and further accelerate their plans.  There is currently no transaction to disclose, nor guarantee that such a review may result in any transaction involving Cushman & Wakefield.”

At the moment, the spokesman adds, C&W is riding high thanks to “a record-breaking financial performance from a revenue and EBITDA perspective, which solidifies our position as a top tier global real estate services firm. We have an ambitious strategic plan, which we are emboldened to further accelerate.  And we've had a great long-term relationship with EXOR, who have fully endorsed the strategic plan and direction of the firm, and has been a very supportive partner since '07.” A spokesman for Morgan Stanley declines comment.

GlobeSt.com will provide further news and analysis as more information becomes available.