CBRE Group is set to acquire a 60% stake in Turner & Townsend for £960m, which will expand its business in the US, where CBRE has deep occupier and investor relationships
CBRE will acquire a 60% stake in Turner & Townsend for approximately £960m, with 55% to be 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 £1.6bn.
‘A transformational transaction’
“This is a transformational transaction for our project management business in terms of both breadth and scale of capabilities,” said Bob Sulentic, CBRE’s president and chief executive officer.
“We see sizable secular growth opportunities in project management, which are being propelled by rising public and private infrastructure investment and the drive to a low-carbon global economy.
“Turner & Townsend is by far the best firm to help us realise our ambitions for this business. It is an exceptionally well-run company with a first-rate brand, enviable client base and expertise that complements our capabilities.”
Among the key benefits to Turner & Townsend from the strategic partnership is the opportunity to materially expand its business in the Americas, where CBRE has deep occupier and investor relationships and a leading market presence.
Vincent Clancy, chairman and chief executive officer of Turner & Townsend, commented: “The combined partnership of CBRE and Turner & Townsend will create the premier global provider of program, project and cost management from day one.
“Turner & Townsend will continue to offer independent advice, solutions and programme level thinking across the real estate, infrastructure and natural resources sectors.
“Our global network means this applies everywhere in the world – we operate where our clients operate. The combination of unrivalled global footprint, sector expertise, commitment to investment and an incredible team of people will make CBRE and Turner & Townsend the go-to firms in our industry.”
Upon closing the transaction, Clancy and the existing Turner & Townsend management team will continue to run the company on a day-to-day basis.
Turner & Townsend will be governed by a new board of directors, consisting of three CBRE executives and three Turner & Townsend executives.
The transaction is subject to regulatory approvals and other customary closing conditions. Closing is expected in the fourth quarter of this year.