CBRE buys US defence department contractor for $800m

CBRE has agreed to buy J&J Worldwide Services, an engineering and facilities maintenance provider for the US government, for $800m (£637m). The purchase also includes a potential earn-out of up to $250m, payable in 2027, subject to the acquired business meeting certain performance targets. J&J, which was acquired from Arlington Capital Partners, primarily serves the US Department of Defense through long-term, fixed-price contracts. The company employs more than 3,300 people worldwide, serving more than 250 hospitals, clinics and military bases in the US, as well as in Europe, Asia, the Caribbean, and the Middle East. CBRE said the deal is set to be accretive to its earnings this year, and that it is expected to close in the coming months. J&J is projected to produce more than $525m of revenue and around $65m of EBITDA in 2024. Bob Sulentic, chair and chief executive of CBRE, said: “The acquisition is consistent with key elements of our M&A strategy that focus on enhancing our technical services capabilities, increasing revenue resilience and secular growth, and expanding our government client base within Global Workplace Solutions. “We are adding a company with deep government contracting experience, long-term customer relationships and a 50-year record of outstanding technical service delivery.” Photo © Alexander Pohl/Shutterstock