SIRVA, Inc. has announced that is entering into a definitive agreement to acquire Cartus Relocation from Realogy Holdings. The deal, for an estimated total of $400 million, includes all of the relocation assets associated with the business, but not it's home buying and selling member assistance, dubbed Cartus Affinity, nor its broker network of agents from Realogy’s other brands.
The addition of Cartus to SIRVA’s existing relocation portfolio will expand its service and support capability, adding an additional stream of talent and experienced global mobility professionals.
“The winners in this transaction are undoubtedly our clients and their employees. We’re excited by the tremendous potential of this highly complementary combination to enhance our capabilities and service for clients. Together, we will have the opportunity to provide our customers with the best that each company has to offer, including best-in-class technology, a well-established Real Estate Broker network, an integrated household goods capacity and a superior experience for our clients’ relocating corporate employees. Cartus’ talented relocation professionals are steeped in mobility expertise, and we look forward to welcoming them to the SIRVA family.”
Tom Oberdorf – CEO, SIRVA
Realogy has said that they will use the majority of the net proceeds from the transaction, after tax and other separation-related costs, to pay down corporate debt and reinvest the remainder into the business.
“The sale of Cartus’s Relocation business is part of Realogy’s strategy to simplify and streamline our company as we strengthen and hone our value proposition. This transaction will allow Realogy to retain and focus on growing elements of the business that are critical to our value proposition, including our Affinity and other lead generation partnership programs, which benefit from our established Broker Network. It will also allow us to use net proceeds to reduce debt, reinvest in the business, and drive greater long-term value for our shareholders.”
Ryan Schneider – CEO and President, Realogy
The transaction is expected to be completed within the first two quarters of 2020, pending regulatory approval and the fulfilment of other closing conditions.