CBRE has agreed a deal to buy the Global WorkPlace Solutions business of Johnson Controls in a $1.5bn (£1bn) deal.
The cash deal will add a major integrated facilities management business to CBRE’s real estate services offering.
CBRE president and chief executive Bob Sulentic said: “The exceptionally talented GWS team will greatly enhance our service offering for occupiers around the world.
“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.”
Johnson Controls’ GWS president John Murphy will join CBRE as part of the deal as global chief operating officer of GCS.
He said: “This combination will create a global market leader in the provision of value-added occupier services that enable clients to derive maximum value from their workplaces. Together, we will assure clients of high-quality, reliable, cost-efficient, comfortable and safe working environments no matter their core business mission.”
Together the combined business will manage nearly 5bn sq ft of property, including 2.3bn sq ft in the Americas, 1.2bn sq ft in Europe, the Middle East and Africa and 1.4bn sq ft in Asia Pacific.
The GWS business employs around 16,000 people and generated $3.4bn of revenue in the 12 months ended 31 December 2014.
As part of the deal CBRE will provide Johnson Controls with a full suite of intregrated corporate real estate services on more than 50m sq ft of property.
The companies will also jointly fund an innovation lab to develop energy management solutions.
jack.sidders@estatesgazette.com
See a video tour of CBRE’s London headquarters below:
