[Global] CD&R gains PwC’s global mobility tax consultancy arm in $2.2bn deal

CD&R has reached a $2.2bn takeover deal with PwC to take on its global mobility tax and immigration services business, it is the consultancy giant’s biggest sell-off in almost two decades, City A.M. reports.

Currently, the unit advises more than 3,000 organisations around the globe with tax and immigration compliance issues when they move staff overseas; a market that practically came to a halt in the wake of COVID-19.

It operates in about 40 territories worldwide, with main presences in the US and UK, and substantial operations in Australia, Canada and the Middle East.

Despite the pandemic slow down, CD&R reportedly believes the business - which operates in about 40 territories worldwide - is well-positioned to help organisations navigate the “more complex” compliance issues that have arisen as travel makes a comeback.

The terms of the transaction have not been disclosed but the buyout group expects it to close in the first half of 2022, subject to customary closing conditions.

Following completion of the transaction, the business will be rebranded and led by new CEO Peter Clarke, who is currently the global managing partner for global employee mobility at PwC. The new chair will be Russ Fradin; partner at CD&R and former chief executive and chair of Aon Hewitt.

Mr Fradin said, “The return of business travel, emerging mobile work patterns, and the heightened need for compliance in a complex business and regulatory environment will drive significant need for a globally integrated provider with a sophisticated digital platform.” 

This takeover represents PwC’s largest disposal since the sale of its consulting division to IBM in 2002 for $3.5bn, after the Enron scandal, before rebuilding its consultancy services.

It follows fellow Big Four giant Deloitte agreeing to sell its UK insolvency business to public relations and advisory company Teneo, backed by CVC Capital Partners, back in February.

A month later, KPMG sold its restructuring practice - now known as Interpath Advisory - for around £400m to a newly-formed company backed by private equity firm HIG Europe.

CD&R has had a hectic month, a fortnight ago it beat the Fortress Investment consortium at auction for Morrisons in a £10bn deal for the supermarket.

CD&R has reached a $2.2bn takeover deal with PwC to take on its global mobility tax and immigration services business, it is the consultancy giant’s biggest sell-off in almost two decades, City A.M. reports.

Currently, the unit advises more than 3,000 organisations around the globe with tax and immigration compliance issues when they move staff overseas; a market that practically came to a halt in the wake of COVID-19.

It operates in about 40 territories worldwide, with main presences in the US and UK, and substantial operations in Australia, Canada and the Middle East.

Despite the pandemic slow down, CD&R reportedly believes the business - which operates in about 40 territories worldwide - is well-positioned to help organisations navigate the “more complex” compliance issues that have arisen as travel makes a comeback.

The terms of the transaction have not been disclosed but the buyout group expects it to close in the first half of 2022, subject to customary closing conditions.

Following completion of the transaction, the business will be rebranded and led by new CEO Peter Clarke, who is currently the global managing partner for global employee mobility at PwC. The new chair will be Russ Fradin; partner at CD&R and former chief executive and chair of Aon Hewitt.

Mr Fradin said, “The return of business travel, emerging mobile work patterns, and the heightened need for compliance in a complex business and regulatory environment will drive significant need for a globally integrated provider with a sophisticated digital platform.” 

This takeover represents PwC’s largest disposal since the sale of its consulting division to IBM in 2002 for $3.5bn, after the Enron scandal, before rebuilding its consultancy services.

It follows fellow Big Four giant Deloitte agreeing to sell its UK insolvency business to public relations and advisory company Teneo, backed by CVC Capital Partners, back in February.

A month later, KPMG sold its restructuring practice - now known as Interpath Advisory - for around £400m to a newly-formed company backed by private equity firm HIG Europe.

CD&R has had a hectic month, a fortnight ago it beat the Fortress Investment consortium at auction for Morrisons in a £10bn deal for the supermarket.