CBRE Group, Inc. (NYSE:CBRE) and Turner & Townsend Holdings Limited have completed their previously announced transaction whereby CBRE has acquired a 60% ownership interest in, and entered into a strategic partnership with, Turner & Townsend.
Turner & Townsend provides program management, cost consultancy, project management and advisory consulting services for clients in 46 countries.
It operates across three business segments: Real Estate – serving investors and occupiers across all property types, including data centres and life-science properties; Infrastructure – notably, transportation, environmental and power generation projects, and Natural Resources – renewable energy, alternative fuels, liquified natural gas and other projects.
Bob Sulentic, CBRE’s president and chief executive officer, said: “This is a very exciting step that advances CBRE’s diversification strategy across four dimensions – asset types, lines of business, clients and geographies.
“Public and private sector infrastructure investment and the drive to a low-carbon economy are fuelling secular growth opportunities in project management. Turner & Townsend is by far the best firm to help us realize our ambitions for this business. Their first-rate brand and capabilities – when combined with our own – will enable both firms to best serve clients and capture the sizeable opportunities in the marketplace.”
Vincent Clancy, chairman and chief executive officer of Turner & Townsend, added: “As asset classes evolve and the world transitions to net zero, clients require even greater sector specialization and industry insight to drive value and unlock opportunities. C
“BRE and Turner & Townsend will meet this need by aligning our skillsets, providing access to a global talent pool of more than 16,000 program, project and cost managers as well as the industry’s largest repository of project performance data. The combination of our talented team, operational independence, global footprint and commitment to investment will deliver significant benefits for clients while providing a great place for our people to advance their careers.”
Clancy and the existing management team will continue to run Turner & Townsend, and all its services are being delivered under the Turner & Townsend brand.
CBRE has acquired a 60% stake for approximately £960 million (US$1.3 billion) in cash, with 55% paid upon closing.
The transaction preserves Turner & Townsend’s existing leadership team, heritage, operational independence and partnership structure, which will hold the remaining 40% ownership interest.
The transaction values Turner & Townsend at approximately £1.6 billion ($2.2 billion) and is expected to be immediately accretive to CBRE’s earnings.