CBRE Closes Acquisition of Global Workplace Solutions
CBRE Group, Inc. Closes Acquisition of Global Workplace Solutions Business from Johnson Controls, Inc.
| September 1, 2015
CBRE Group, Inc. (NYSE:CBG) today announced that it has closed the acquisition of Johnson Controls, Inc.’s (NYSE:JCI) Global Workplace Solutions business. Global Workplace Solutions is a market-leading provider of enterprise facilities management solutions for global corporations and other large occupiers of commercial real estate. Global Workplace Solutions had revenue of more than $3.0 billion in calendar year 2014.
“This is a very exciting step for CBRE,” said Bob Sulentic, the company’s president and chief executive officer. “It advances our strategy of delivering the highest quality, globally integrated services to major occupiers and builds our relationships with many of the world’s most prominent corporations. We are helping our clients to enhance their competitive position by aligning every aspect of how they lease, own, use and operate real estate.”
The advantages of outsourcing real estate services, coupled with the high quality of CBRE’s offering, have fueled long-term, double-digit revenue growth for its occupier outsourcing business line. The addition of Global Workplace Solutions’ expertise around the world in technical engineering, supply chain management, critical facilities and other capabilities adds significantly to CBRE’s already-robust service offering for occupiers.
Global Workplace Solutions is the largest provider of facilities management services outside the U.S., while CBRE’s facilities management services are weighted to the Americas. The combined service offering will provide clients with materially greater scale advantages in virtually every corner of the world.
Global Workplace Solutions has been merged with CBRE’s occupier outsourcing business line, and the new combined business has adopted the Global Workplace Solutions name. CBRE’s Global Workplace Solutions business line serves a blue-chip roster of large occupiers across a wide range of industries, particularly financial services, healthcare, industrial/manufacturing, life sciences, technology and telecommunications. CBRE will make available to these clients the full range of its occupier services, including property leasing and sales transactions, project management and construction services, technical engineering, consulting, and more.
CBRE’s new Global Workplace Solutions business line is led by Bill Concannon (CEO of CBRE’s occupier outsourcing business line prior to the acquisition) and John Murphy (formerly president of Global Workplace Solutions when it was part of JCI). Mr. Concannon serves as CEO, Global Workplace Solutions, and Mr. Murphy serves as COO, Global Workplace Solutions.
Mr. Concannon said: “We are thrilled that our new colleagues have joined CBRE. They are an enormously talented group and our combined capabilities create a value proposition that is truly unique in the marketplace.”
Mr. Murphy noted: “We are extremely excited to be part of the first-class team at CBRE. Together, we combine industry-leading intelligence across markets and asset types with superior execution to produce consistently exceptional outcomes for clients.”
CBRE now manages approximately 5 billion sq. ft. of commercial real estate and corporate facilities around the world, including 2.3 billion sq. ft. in the Americas, 1.3 billion sq. ft. in Europe, the Middle East & Africa, and 1.4 billion sq. ft. in Asia Pacific.
In addition, CBRE and Johnson Controls have forged a 10-year strategic relationship, as previously announced. CBRE will provide Johnson Controls with a full suite of integrated corporate real estate services (including facilities management, project management and transaction services) on more than 50 million sq. ft. of real estate. Johnson Controls has joined CBRE’s network of suppliers and partners, and will offer its lowest available commercial-pricing on HVAC, building automation, security, fire and related services to CBRE clients and CBRE-managed properties worldwide. The companies will also jointly fund a building innovation lab which will advance a new generation of workplace solutions to help clients attain their performance goals.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
“Safe Harbor” Statement Under the U.S. Private Securities Litigation Reform Act of 1995
Certain of the statements in this release regarding the acquisition of Global Workplace Solutions that do not concern purely historical data are forward-looking statements within the meaning of the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including, but not limited to, CBRE’s ability to successfully integrate Global Workplace Solutions with its existing operations globally, as well as other risks and uncertainties discussed in CBRE’s filings with the U.S. Securities and Exchange Commission (SEC). Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, CBRE expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If CBRE does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. For additional information concerning factors that may cause actual results to differ from those anticipated in the forward-looking statements and risks to CBRE’s business in general, please refer to CBRE’s SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015. Such filings are available publicly and may be obtained off CBRE's website at www.cbre.com or upon request from the CBRE Investor Relations Department at [email protected].