April 1, 2015
Property giant CBRE has reached an agreement to acquire the facilities management business of Johnson Controls for $1.47bn. The deal will see CBRE acquire the Global WorkPlace Solutions (GWS) FM arm of the business, allowing the new enterprise to manage nearly 5bn sq ft of commercial real estate worldwide consisting of 2.3bn sq ft in North and South America, 1.2bn sq ft in EMEA and 1.4 bn sq ft in Asia Pacific. GWS, currently employs around 16,000 people worldwide, and had a turnover of around $3.4bn in 2014.The deal also see the two firms enter into a ten year strategic relationship, with CBRE offering a range of real estate services with Johnson Controls offering HVAC equipment and a range of building automation systems and other products in return. Both firms will also share investment in research and development.
“The exceptionally talented GWS team will greatly enhance our service offering for occupiers around the world,” said Bob Sulentic, president and chief executive officer of CBRE. “With GWS, we further our ability to create advantages for occupier clients by aligning every aspect of how they lease, own, use and operate real estate to enhance their competitive position.”
“Clients are increasingly asking us for fully integrated real estate and facilities solutions, which includes self-performing building technical services across their global portfolios,” said Bill Concannon, chief executive officer, GCS for CBRE. “GWS will further improve our ability toserve 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.”