TPG sole bidder for Australian engineering carve-out - report
TPG is said to have emerged as the sole final bidder for DTZ, the property services arm of Australian engineering and property management company UGL.
According the Reuters, Sydney-based UGL - formerly United Group - had expected four bids from private equity investors by its May 16 deadline. However, with just one bidder left, current plans to sell DTZ are now in doubt. TPG's bid price was not disclosed but UGL has plans to sell its unit for A$1.2 billion ($1.12 billion).
UGL had been forced to consider the sale of DTZ after struggling with high debt and falling profits at its main engineering services division. The initial plan was to sell DTZ via a public share sale but, after DTZ helped lift UGL's net profit for the six months to December 31, the parent said in February that it would opt for private sale instead.
Claiming a history that dates back to 1784, DTZ sells and leases office space on behalf of developers and property owners. The business now operates in 52 countries and employs more than 40,000 people. Around half of its revenues are generated in the US, with the balance coming from Europe, Asia and Australia. Its main competitors include CBRE Group and Jones Lang LaSalle.
UGL's financial woes have in part been a result end of Australia's mining boom with half-year results showing engineering profits have tumbled 40%.
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