Realogy purchased in $9 billion deal

NEW YORK – Jan. 2, 2007 – Private-equity firm Apollo Management L.P. agreed to purchase Realogy Corp., the parent company of several real estate franchises, in a $9 billion deal.

Apollo would assume Realogy’s debt and other liabilities of about $2.4 billion. Stockholders would receive $30 per share in cash, according to a statement released by the companies. 

Realogy is the country’s largest real estate franchisor, owning the Century 21, Coldwell Banker, ERA, and Sotheby’s franchise operations as well as NRT Inc. Apollo is a leader in private equity, debt, and capital markets investing.

“Under [Apollo’s] ownership, Realogy’s strong and highly competitive franchising, brokerage, relocation, and title services businesses will be able to continue moving forward, executing our current business plans and developing new opportunities for growth,” says Richard A. Smith, vice chairman and president of Realogy, in a statement announcing the deal.

The agreement still needs to be approved by a majority of Realogy’s shareholders and is expected to close by the spring of 2007. Upon completion of the transaction, Realogy stock would no longer be listed on the New York Stock Exchange. 

The deal “will enable stockholders to realize the value of Realogy’s fundamentally strong business,” says Henry Silverman, the chairman and CEO of Realogy. “At the same time, the valuation takes into account the substantial pressures and uncertainties facing the residential real estate markets that may well continue for some time.” 

Under the terms, Silverman would continue to serve as Realogy’s chairman and CEO through December 2007. 

Source: REALTOR® Magazine Online
 

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