CBRE buys Johnson Controls unit for $1.47bn
Corporate real estates are hot properties nowadays and so are the companies that service them.
CBRE Group, the world's largest commercial real estate services company by revenue, has agreed to acquire Johnson Controls' facilities management business for $1.47bn.
The division — called Global WorkPlace Solutions — provides on-site maintenance services for more than 1.8bn square feet of corporate real estate and had $4bn in revenue for the year to September 2014.
For CBRE, the deal would add more scale to its own real estate service business.
For Johnson, which will be the preferred provider of HVAC equipment, building automation systems to the portfolio of real estate and corporate facilities managed by CBRE and GWS, the deal is expected to generate up to $500m a year worth of new revenue for its building efficiency business.
Alex Molinaroli, chairman and CEO of Johnson Controls said:
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.
In addition, the new strategic partnership provides another new, strong channel for Johnson Controls to serve CBRE and its clients around the world with our full portfolio of buildings technologies and services.
Shares of Johnson rose 3.6 per cent to $49.83 in pre-market trading.