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Colliers Largest Member Sells 70% Stake for $88M

TORONTO-Colliers Macaulay Nicholls International agrees to sell the majority stake in its 80-office company to locally based FirstService Corp., a publicly traded company heretofore focused on residential property management. CMN has generated $18 million EBITDA over the past 12 months.

By Brian K. Miller | Updated on October 14, 2004

TORONTO-Colliers Macaulay Nicholls International, the largest member of Colliers International network has agreed to sell a 70% stake in its 80-office company to locally based FirstService Corp., a publicly traded company known for its residential property management portfolio. The transaction is valued at $88 million and includes the assumption of debt. The remaining 30% of the company will remain in the hands of senior management, active brokers and employees of CMN International. The transaction has been approved by the boards of directors of both companies, but is subject to regulatory, shareholder and other approvals. The sale is expected to close November 30, 2004.FirstService chief executive Jay Hennick says his company’s investment in CMN will give the brokerage firm the capital it needs “to take an active role in industry consolidation.” CMN chief executive Doug Frye says the sale will allow CMN to grow the business both “organically and through acquisition.”CMN offices–located in 20 countries in North America, Asia, Latin America and Central Europe–account for about one-third of all offices flying the Colliers International flag. The 4,100-person company generated $280 million in revenue in the past 12 months with EBITDA of $18 million (adjusted for non-recurring items). Based on the expected completion date of November 30, 2004, FirstService expects that CMN will contribute $0.01 to $0.04 to FirstService’s diluted earnings per share for the fiscal year ending March 31, 2005.

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