DTZ Purchase Swallows Up Last Independent Real Estate Brokerage

"We've had several international relationships over the years, and the last one was bought by CB," said Barnicke, referring to Insignia Financial Group Inc., with which it joined forces three years ago. CB Richard Ellis's NYSE-listed parent company busted up the alliance with a $431-million US deal for Insignia. But the key to Thursday's deal, which will see DTZ acquire J.J. Barnicke for $26.6 million Cdn, subject to a working capital adjustment, was keeping Barnicke's longtime workers. Chris Ridabock, a past-president of J.J. Barnicke, will return as chief executive of the new DTZ Barnicke, which will have 17 offices across Canada and more than 450 employees. "The main goal was that the entire company and the people who made the company would be retained as a unit, rather than it going to some people who might not take on all the backup staff," said Barnicke, who will serve as chairman during a phase-in period. "Some of these people have looked to me as a father. The key was to keep the team together. DTZ was the perfect fit." Sources indicated that Barnicke had been approached by a number of suitors, but DTZ -- a dominant player in Europe but hardly a brand name in North America -- was the only one willing to keep the Barnicke unit intact. The Barnicke purchase is just the latest consolidation in the sector. Two years ago, Cushman & Wakefield took out Canadian icon Royal LePage Commercial Inc. and rebranded it Cushman & Wakefield LePage in Canada. Before that, First Service Corp. picked off CMN International Inc., which operates the Colliers brand in Canada. "There is no choice for Canadian firms. You either strike an alliance with firms in other countries or you agreed to be sold," said one real estate industry insider. Barnicke staged a remarkable comeback in the past decade after his firm was devastated by an embezzlement scandal. The company's chief financial officer, Jim Lake, had been forging Barnicke's signature. After being confronted by Barnicke, he killed himself by jumping in front of a subway train. "There was a lot of confidence lost in the company after that, but Joe was able to turn it around," said one source. ... http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=73fd8799-488b-468e-93a5-80572df204be&k=22603 [Proofreader’s note: this article was edited for spelling and typos November 13, 2007]

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