CBRE picks up facilities management unit from Johnson Controls for $1.5bn

Property titan CBRE Group on Tuesday announced the acquisition of the Global Workplace Solutions business owned by Johnson Controls for $1.5bn.

The purchase price is $1.475bn, payable in cash, or $1.3bn net of the present value of estimated tax benefits, and with customary post-closing adjustments for working capital and other items.

CBRE will fund the acquisition through a combination of cash on hand and proceeds from the incurrence of debt.

GWS is a provider of integrated facilities management solutions for major occupiers of commercial real estate and has operations around the world. GWS generated approximately $3.4bn of revenues last year.

CBRE anticipates that GWS will be accretive to its adjusted earnings per share in 2016. The transaction is expected to close in the late third quarter or early fourth quarter of 2015 and is subject to customary regulatory approvals.

CBRE and Johnson Controls also announced a 10-year strategic relationship in which both will jointly fund an innovation lab that will develop energy management solutions to lower costs and enhance their clients’ work environments.

“This agreement with CBRE is a great step for both companies that will allow each of us to build upon our core strengths to create new sources of value for our customers,” said Alex Molinaroli, chairman and chief executive of Johnson Controls.