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.
More information about CBRE’s Global Workplace Solutions business is
available at
www.cbre.com/WorkplacePerformance.
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 investorrelations@cbre.com.
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