CBRE Group, Inc. Closes Acquisition of Norland Managed Services LTD
CBRE Group, Inc. Closes Acquisition of Norland Managed Services LTD
December 23, 2013
Los Angeles, CA, December 23, 2013— CBRE Group, Inc. (NYSE:CBG) today announced that it has closed the acquisition of Norland Managed Services Ltd (Norland), a best-in-class provider of technical engineering services for commercial buildings in the United Kingdom (UK) and Ireland, with a growing customer base in the United States and Singapore.
Norland’s market-leading capabilities enable CBRE to self-perform technical engineering services for commercial buildings and to provide its clients with fully-integrated outsourcing services in Europe. Norland also provides CBRE with increased expertise in the management of critical environments, such as data centers and trading floors - a growing market segment requiring specialized knowledge and experience.
Norland will be part of CBRE’s Global Corporate Services (GCS) business in EMEA (Europe, the Middle East & Africa), which serves leading occupiers across the region. The business will continue to be led by its CEO, Ian Entwisle.
“We are very pleased to be part of the world’s leading commercial real estate company,” said Mr. Entwisle. “CBRE provides an ideal platform from which we can better serve our clients and further grow our business.There are tremendous opportunities ahead – for us and our clients.”
“We are excited to welcome our new Norland colleagues to CBRE,” said Bill Concannon, CBRE’s CEO of GCS. “Occupiers are seeking to consolidate their supply chains by selecting a single property adviser that can offer them all of the services they need. The combined strength of Norland’s technical expertise and our broad service offering will enable us to provide all of the benefits of a fully integrated offering of outsourcing services to clients in EMEA, as we already do in other regions.”
“The closing of the Norland acquisition is a key milestone in the growth of our EMEA business,” said Mike Strong, CBRE’s CEO of EMEA. “Over a number of years, we have worked to broaden the range of services we offer to our clients and to diversify our revenue base.Norland fulfills an integral part of our strategy, and we look forward to working with Ian and his talented team to offer clients access to an unmatched suite of best-in-class services.”
Norland has increased both revenue and profits at a compound annual growth rate of more than 20% over the past decade. This growth has been fueled by corporations and other large occupiers retaining third-party specialists to manage their real estate. Norland typically serves these clients under long-term contracts. For fiscal year 2013 (ended April 5, 2013), Norland reported revenue of £384.8 million (approximately $629.3 million).
As previously announced, CBRE acquired Norland for approximately £265.5 million ($434.3 million) paid in cash at closing (which included a payment in respect of an excess working capital adjustment and related items), plus 362,916 shares of CBRE common stock issued at closing. In addition, CBRE may pay up to £50.0 million ($81.8 million) in deferred contingent consideration in cash. CBRE financed the acquisition with cash on hand, which totaled more than $500 million as of September 30, 2013, and borrowings under its revolving credit facility, which had approximately $1.1 billion available at the end of the third quarter of 2013.
About Norland Managed Services Ltd Norland Managed Services Ltd is one of the UK and Ireland’s leading providers of facilities, energy and project management services with revenues of £384.8 million (approximately $629.3 million) for its fiscal year ended April 5, 2013.The company operates from a strategic network of regional offices throughout the UK, Ireland, the U.S. and Singapore. A dedicated team of highly trained and experienced staff maintain and enhance the capital assets of major national and global businesses. These range from single floors in multi-occupied buildings to substantial property estates, large stadiums and critical environments. Since its formation in 1984, Norland has achieved consistent annual growth, with its success built on high levels of customer service and a major focus on people and technical skills. Norland is ranked 53rd in The Sunday Times HSBC Top Track 250 league table, which ranks Britain’s leading mid-market private companies with the biggest sales – increasing 49 places from its position last year. For more information about Norland, please visit www.norlandmanagedservices.co.uk.
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 2012 revenue).The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 Norland Managed Services Ltd 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, the ability of the parties to successfully integrate Norland with CBRE’s existing facilities management and outsourcing operations in Europe and 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, 2012 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. 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].