31 March 2015
CBRE Group, Inc. announced today that it has entered into a definitive agreement to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc.
GWS is a provider of integrated facilities management solutions for major occupiers of commercial real estate and has significant operations around the world.
The purchase price is $1.475 billion (£999 million), payable in cash, or $1.3 billion (£880 million) net of the present value of estimated tax benefits, and with customary post-closing adjustments for working capital and other items.
GWS will operate as part of CBRE's Global Corporate Services (GCS) business, which has increased revenue at a double-digit compound annual growth rate over the past decade, as more major corporations and other institutions outsource their real estate services. When the transaction is completed, the full range of combined occupier services - notably including CBRE's leasing expertise and GWS's engineering expertise - will be available to the clients of both companies.
CBRE and Johnson Controls also announced a 10-year strategic relationship.
CBRE will provide Johnson Controls with a full suite of integrated corporate real estate services (including FM, project management and transaction services) on more than 50 million square feet and Johnson Controls will offer a factory-direct relationship on HVAC equipment, building automation systems and related services to CBRE for its managed properties.
In addition, the companies will jointly fund an innovation lab that will develop leading-edge energy management solutions to lower costs and enhance their clients' work environments. The joint innovation lab will evaluate, connect and leverage products, services and energy data to create value for occupiers and investors in real estate.
Bill Concannon, chief executive officer, GCS for CBRE, said: "GWS will further improve our ability to serve clients in more than 50 countries with a market-leading capability in all services, industry sectors and property types. The GWS team is a great fit for our business. They bring leadership and expertise in many areas that are vital to our clients, including engineering excellence, global supply chain management, mission-critical facilities and energy management."