Berkshire Real Estate Denies Talks with Compass

HomeServices CEO denies Compass deal talks

Berkshire Real Estate Denies Talks with Compass

“No such sale is being contemplated,” Gino Blefari told employees after WSJ report

Berkshire Hathaway HomeServices CEO Denies Compass Talks — HomeServices’ Gino Blefari and Compass CEO Robert Reffkin (Getty, Hitchcock + Associates)

The head of Berkshire Hathaway HomeServices called bull on a Wall Street Journal report claiming Compass was in “advanced talks” to acquire the firm.

In an email to franchisees, HomeServices CEO and chairman Gino Blefari denied any ongoing deal discussions between the two companies.

“I want to confirm to you that there are no discussions, negotiations, or agreements to sell HomeServices or any of its affiliated companies, and that includes the Berkshire Hathaway HomeServices franchise business,” wrote Blefari.

“Moreover, no such sale is being contemplated,” he said.

The Journal first reported the residential giant was in talks for the firm, country’s fourth-largest brokerage, according to RealTrends.

The strong denial from Blefari is an abrupt turn of events in a deal that was expected to be coming together soon, sources told the Journal.

The move would be a major step in what has become a 12-month period of rapid consolidation for Compass, the nation’s largest brokerage by deal volume.

Compass sent shockwaves through the industry last year when it announced a $444 million deal to acquire Christie’s International Real Estate and @properties. @properties was the eighth-largest brokerage in the country before the acquisition, according to RealTrends.

The acquisitions have contributed to Compass’ push to grow its private listings network. In the firm’s most recent earnings call, Reffkin said 7,500, or 35 percent of the company’s listings, were off-MLS. In February, more than half of new Compass listings started as private exclusives or were available only on Compass.com, which are part of the company’s latest consumer marketing strategy.

Byline – John Ford – Boston Seaport Condo Broker.