CBRE has entered an agreement to buy UK business Norland Managed Services for £250m.
In addition to the £250m for the firm, which provides commercial building technical services in the UK and Ireland, CBRE will pay up to £50m of deferred contingent consideration, as well as a payment for excess working capital and related items.
The 29-year old Norland comprises 4,000 employees in 14 offices and has more than 300 clients.
Providing services to real estate owners and occupiers, Norland also has a rising number of customers in the United States and Singapore.
Bill Concannon, CBRE’s chief executive of global corporate services, said: “Norland is a strong complement to our global platform. We will have the ability to self-perform building technical engineering services in Europe, as we already do for more than 850m sq ft of client properties in North America, Latin America and Asia-Pacific.”
Ian Entwisle, chief executive of Norland, said: “By uniting our building technical engineering expertise with CBRE’s broad service offering and global reach, we foresee significant opportunities to expand our client base and accelerate our growth.”
Turnover at Norland for the year to 5 April was £385m.
Norland’s existing operations will operate as CBRE|Norland. Entwisle will lead the CBRE Norland operation as chief executive.
The purchase price is payable in cash, except for £5.6m that is payable in CBRE common stock to Norland senior management.
The acquisition is expected to close before the end of the year and is subject to approval by the European Commission.
joanna.bourke@estatesgazette.com
