| Cendant Corp., the company that owns the Coldwell Banker, ERA and Century 21 real estate franchises, as well as a number of major hotel franchises, recently exercised its option to acquire 100 percent of the common stock of NRT Inc. NRT is largest residential real estate brokerage company in the country, operating more than 850 offices with more than 45,000 agents in 24 of the nation’s largest metropolitan areas.
Cendant acquired the company in a stock deal with Apollo Management LP and members of NRT management. The purchase price was approximately 12 million shares of Cendant common stock or $230 million, plus assumption of about $300 million of net debt, which will be retired.
NRT was formed as a joint venture between Cendant and Apollo Management in 1997. In 2001, the company represented buyers and sellers of approximately $120 billion of residential real estate.
In a related move, NRT acquired Clearwater, Fla.-based Arvida Realty Services, one of Florida’s largest real estate brokerage and development companies. Arvida provides a broad range of real estate brokerage, mortgage and title services throughout Florida. The company has approximately 3,700 licensed real estate sales associates, 765 employees and 110 offices.
The St. Joe Company sold Arvida to NRT for approximately $158 million plus about $12 million for working capital in an all-cash transaction.
NRT will continue to use the Arvida name for a transitional period and will eventually bring it under the Coldwell Banker banner. |
