UGL (UGL) has confirmed the long-gestating sale of its property arm, DTZ, to a private equity consortium including TPG Capital (TPG) for $1.215 billion, but surprised investors with the announcement of a CEO succession plan to be effected by the end of 2014.
The group said it expects net proceeds of between $1bn and $1.05bn from the sale to TPG, PAG Asia Capital (PAG) and Ontario Teachers’ Pension Plan (OTPP).
UGL said it expects the deal to be completed around September, pending certain approvals from regulatory bodies.
In a separate release, UGL announced Ross Taylor would succeed Richard Leupen as managing director and chief executive officer from November 24.
Mr Leupen will work with the board to ensure a smooth leadership transition prior to Mr Taylor's commencement.
According to the newspaper, private equity firms, including Warburg Pincus, have already made approaches to UGL with a view to collaborating on further acquisitions of engineering businesses, including potentially, John Holland.