Real estate services giant Cushman & Wakefield Inc. on Monday announced that it had completed its acquisition of Los Angeles-based Cushman Realty Corp., forming one of Southern California's largest commercial real estate brokers.
Cushman Realty's approximately 200 employees and 11 offices have adopted the Cushman & Wakefield name and are being integrated into the New York-based company's operations.
Officials declined to report the financial details of the deal between the two privately held companies.
The acquisition will double the size of Cushman & Wakefield's brokerage staff to nearly 170 in Southern California. In addition, the company will pick up some major accounts, such as Boeing Co., that had been longtime Cushman Realty clients. The combined company has annual revenue in excess of $900 million.
"Lots of people will have to work hard to purse the integration of the two entities so it's as seamless as possible," said Cushman Realty co-founder John Cushman, who now serves as chairman of Cushman & Wakefield.
In Southern California, offices of Cushman Realty and Cushman & Wakefield that once competed for business in downtown Los Angeles, Century City, Long Beach, Irvine and San Diego will be merged.
So far, only about two dozen people nationwide have been laid off or left the combined company as a result of the acquisition, according to company officials. They said job cuts would be minimal but did not provide any specific numbers.
Cushman & Wakefield's top executives will arrive in Los Angeles within two weeks to orient the Cushman Realty staff in new procedures and policies, said Andrew Ratner, a former Cushman Realty executive who will now head the merged Los Angeles office.
Ratner and others downplayed the potential difficulties in merging companies with distinct corporate cultures.
Cushman Realty was regarded by brokers as an aggressive and entrepreneurial player while the much larger Cushman & Wakefield is viewed as more bureaucratic and methodical.
"Cushman & Wakefield operates the same [way] we operate," said John Cushman.
The acquisition reunites John Cushman and his twin brother, Louis, with the company that was co-founded more than 90 years ago by their grandfather, J. Clydesdale Cushman, and Bernard Wakefield. After working for Cushman & Wakefield for several years, John and Louis Cushman left the company to found Cushman Realty in 1978.
Louis Cushman, who is based in Houston, has become a vice chairman and member of the board of directors of Cushman & Wakefield.
Cushman & Wakefield, which is headed by President and Chief Executive Arthur J. Mirante II, is part of a worldwide network of 174 offices staffed by more than 9,000 employees.