CBRE GROUP, INC. CLOSES ACQUISITION OF GLOBAL WORKPLACE
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 fullrange 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. In EMEA, the business line will be led by Ian Entwisle as CEO supported by COO Tony Smith and Guy Holden, who joins from JCI as EMEA President of Enterprise Accounts. 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 CBREmanaged 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. More information about CBRE’s Global Workplace Solutions business is available at www.cbre.com/WorkplacePerformance.