* To buy unlisted Studley Inc
* To pay initial consideration of up to $130 mln
* To issue promissory notes worth up to $130 mln
* Shares fall 2 pct
(Adds details from statement, background, share movement)
May 1 British property consultant Savills Plc
said it would buy U.S.-based commercial real estate
services firm Studley Inc for up to $260 million to expand in
Savills said it would pay an initial consideration of up to
$130 million in cash and shares. It will also issue promissory
notes worth up to $130 million - with $60 million being paid a
year after the deal closes and $70 million two years after that.
The FTSE-250 company said it expected to seal the deal by
May 30, following which it would rebrand its U.S. arm as Savills
The United States is Savills smallest market and accounted
for just under 1 percent of its 904.8 million pounds ($1.53
billion) revenue last year. The company has larger operations in
the UK, Asia Pacific and across Europe.
Studley, which specializes in tenant representation,
reported a pretax profit of $6 million and revenue of $233
million in 2013.
Savills said the deal would add to its underlying earnings
per share in the first year.
Shares in Savills were down 2 percent at 591.3 pence at 1241
GMT on the London Stock Exchange on Thursday.
($1 = 0.5922 British Pounds)
(Reporting by Esha Vaish in Bangalore; Editing by Joyjeet Das)