DALLAS - CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm, has completed the acquisition of J&J (NYSE:JNJ) Worldwide Services, a company known for providing engineering services and facilities maintenance to the U.S. federal government.
This transaction, which includes a base purchase price of $800 million in cash and a potential additional earn-out of $250 million in 2027, expands CBRE's technical services capabilities and government client base.
J&J Worldwide Services has been serving the U.S. Department of Defense for over five decades, with more than 3,300 employees worldwide. The company maintains a strong presence in the United States and extends its operations to Europe, Asia, the Caribbean, and the Middle East, managing over 250 hospitals, clinics, and military installations.
Bob Sulentic, chair & chief executive officer of CBRE, remarked on the strategic fit of the acquisition, noting J&J's long-standing government contracting experience and its history of technical service delivery. The deal is seen as a move to enhance CBRE's service offerings in the government sector, particularly within its Global Workplace Solutions segment.
The acquisition by CBRE was previously announced, and the financial terms disclosed include the $800 million upfront cash payment and the contingent earn-out based on the performance of the acquired business.
CBRE, headquartered in Dallas, operates in over 100 countries with more than 130,000 employees, offering a wide range of integrated services to its diverse clientele. The firm has a solid track record in the industry, reflected in its inclusion in the Fortune 500 and S&P 500 lists.
Arlington Capital Partners, a private investment firm from the Washington, D.C. area, specializes in government-regulated industries and was the seller in this transaction. The firm has a history of partnering with companies in sectors such as aerospace and defense, government services and technology, and healthcare.
The completion of this acquisition is based on a press release statement and is subject to the usual risks and uncertainties, including the integration of the new business into CBRE's existing operations. Investors and stakeholders are advised to consider these factors alongside the stated benefits of the acquisition.
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