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CBRE to Acquire 60% Ownership of Turner & Townsend for $1.3B
CBRE Group Inc. and Turner & Townsend Holdings Limited have entered into a definitive agreement whereby CBRE will acquire a 60 percent ownership interest in and enter into a strategic partnership with Turner & Townsend, a United Kingdom-based global provider of program, project and cost management. CBRE will acquire this ownership stake for approximately $1.3 billion in cash, with 55 percent 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 percent ownership interest. The acquisition values Turner & Townsend at approximately $2.2 billion and is expected to be immediately accretive to CBRE’s earnings.
For the 12 months ended April 30, 2021, Turner & Townsend’s net revenue totaled approximately $923 million and adjusted EBITDA totaled approximately $172 million.
“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 realize 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.”
Upon closing the transaction, Vincent Clancy, chairman and chief executive officer of Turner & Townsend, and the existing Turner & Townsend management team will continue to run the company on a day-to-day basis and all its services will continue to be delivered under the Turner & Townsend brand.
Turner & Townsend will be governed by a new board of directors consisting of three CBRE executives: Sulentic, Jack Durburg, global CEO, GWS; and Chandra Dhandapani, chief transformation officer and COO, GWS, along with three Turner & Townsend executives: Clancy, Jeremy Lathom-Sharp, finance director; and James Dand, chief operating officer.
The transaction is subject to regulatory approvals and other customary closing conditions. Closing is expected in the fourth quarter of this year.
- ◦People
