By Joshua Burd
Colliers International has agreed to acquire a controlling interest in Maser Consulting P.A., a Red Bank-based engineering and consulting design firm, in a bid to expand its line of services for clients in commercial real estate and other sectors.
Headquartered in Toronto, Colliers noted that Maser has more than 1,000 professionals operating from 34 offices across 12 states. The real estate services firm said it expects the transaction to close in the second quarter, subject to customary closing conditions, and that Maser will be rebranded as Colliers Engineering Services by the first quarter of 2021.
Financial terms were not disclosed, although Colliers noted that Maser’s senior leadership will remain “significant shareholders” of the business under its partnership model.
“Our investment in Maser is another step forward in our strategy of adding more highly valued, essential services to our private and public real estate and infrastructure clients,” said Jay Hennick, global chairman and CEO of Colliers International. “The transaction establishes us as a major player in the engineering design and consulting sector in the U.S., providing us with another important engine for growth. We see tremendous potential in this segment of the market and expect to leverage our proven track record, acquisition expertise and global brand and platform to grow this business into new markets, as well as cross-sell services to our combined client base.”
Founded in 1984, Maser provides planning, consulting and design engineering services to multiple end markets including site civil, survey and geospatial, transportation, water and wastewater, telecommunication and geo-environmental, according to a news release. The company generated 2019 revenue of $167 million.
The move is the latest step by a commercial real estate services firm to bring additional offerings in-house, but most deals in recent years have focused on areas such as construction and capital markets. The addition of design and engineering services is far less common during the current wave of consolidation, which Maser indicated in Monday’s announcement.
“Our partnership with Colliers — the first in our industry — is the next evolution of our business,” said Richard Maser, Maser founder and chairman. “Colliers’ enterprising culture, decentralized management style, significant insider ownership and proven track record were important factors in choosing our strategic partner.”
Elias Mulamoottil, Colliers’ head of global strategic investments, suggested the move was about more than just commercial real estate.
“Maser’s long and impressive record of growth in multiple real estate and infrastructure end markets, together with its special entrepreneurial culture, made it a perfect fit with Colliers,” said Mulamoottil said. “With the expected push to rebuild and upgrade aging infrastructure in the U.S., Maser’s portfolio of service offerings, long-term contractual projects and diverse client mix provide us with significant new opportunities for growth in a segment with stable revenue streams over all economic cycles.”
Colliers has local offices in Parsippany, Woodbridge and Princeton as part of a global operation that spans 68 countries, with more than 15,000 professionals serving the commercial real estate industry.
“Without question, our new partnership strengthens our capabilities and provides us with specialized market knowledge and deep client relationships that will accelerate our growth in the future,” said Kevin Haney, Maser’s CEO and president. “Our entire team could not be more pleased by this move.”
AEC Advisors acted as financial adviser to Colliers in the transaction, while Sidley Austin acted as legal adviser.