Hughes could not disclose financial details regarding the acquisition but says KHK Group's revenue had been $20 million. Jones Lang LaSalle typically acquires companies for 1.5 times to three times their revenue.
KHK Group was formed in 2000 by Richard Houghton, James Morris, Graham Kent and Jim Kelly. Houghton, who was the managing director at KHK Group, will assume the role of chairman for the Project & Development Services Group at Jones Lang LaSalle in Hanover Square in London's West End. Mike Tiplady is the lead director of the group, which had previously had about 30 employees, Hughes says. "Combining what we had and what they bring, it takes us into a top 10 market position in project management in the UK," he says.
Jones Lang LaSalle acquired the company because there was a "demand from our clients," Hughes says. KHK Group specialized in building out spaces for tenants, managing projects and building out and developing hotels, he says. The acquisition is the eighth "small to medium sized" acquisition Jones Lang LaSalle Europe Middle East and Africa division has made in the last 12 months, Hughes says. Other acquisitions this year included Hargreaves Goswell, GVA Finland and Troostwijk Makelaars.
Last year, Jones Lang LaSalle acquired Rogers Chapman, the Littman Partnership, RSP Group and Area Zero. "Our intent is to keep growing," Hughes says, stressing that they grow "organically" by hiring people in addition to acquisitions. Last year, in Europe, they hired 500 people bringing the amount of employees from 2,300 to 2,800. The Europe, Middle East and Africa division had a 70% growth in revenue in the past year with 90% of that growth from "organic sources" and 10% of the growth from acquisitions, he says.
This year, they expect to acquire an additional two or three small companies, Hughes says.
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