CBRE Group, Inc. Closes Acquisition of Norland Managed Services Ltd
Norland’s Engineering Expertise Enables CBRE to Offer Fully-Integrated Outsourcing Services in EMEA and Strong Capabilities in Critical Environment Facilities Management
CBRE Group, Inc. (NYSE:CBG) today announced that it has closed the acquisition of Norland Managed Services Ltd (Norland), a best-in-class provider of technical engineering services for commercial buildings in the United Kingdom (UK) and Ireland, with a growing customer base in the United States and Singapore.
Norland’s market-leading capabilities enable CBRE to self-perform technical engineering services for commercial buildings and to provide its clients with fully-integrated outsourcing services in Europe. Norland also provides CBRE with increased expertise in the management of critical environments, such as data centers and trading floors - a growing market segment requiring specialized knowledge and experience.
Norland will be part of CBRE’s Global Corporate Services (GCS) business in EMEA (Europe, the Middle East & Africa), which serves leading occupiers across the region. The business will continue to be led by its CEO, Ian Entwisle.
“We are very pleased to be part of the world’s leading commercial real estate company,” said Mr. Entwisle. “CBRE provides an ideal platform from which we can better serve our clients and further grow our business. There are tremendous opportunities ahead – for us and our clients.”
“We are excited to welcome our new Norland colleagues to CBRE,” said Bill Concannon, CBRE’s CEO of GCS. “Occupiers are seeking to consolidate their supply chains by selecting a single property adviser that can offer them all of the services they need. The combined strength of Norland’s technical expertise and our broad service offering will enable us to provide all of the benefits of a fully integrated offering of outsourcing services to clients in EMEA, as we already do in other regions.”
“The closing of the Norland acquisition is a key milestone in the growth of our EMEA business,” said Mike Strong, CBRE’s CEO of EMEA. “Over a number of years, we have worked to broaden the range of services we offer to our clients and to diversify our revenue base. Norland fulfills an integral part of our strategy, and we look forward to working with Ian and his talented team to offer clients access to an unmatched suite of best-in-class services.”
Norland has increased both revenue and profits at a compound annual growth rate of more than 20% over the past decade. This growth has been fueled by corporations and other large occupiers retaining third-party specialists to manage their real estate. Norland typically serves these clients under long-term contracts. For fiscal year 2013 (ended April 5, 2013), Norland reported revenue of £384.8 million (approximately $629.3 million).
As previously announced, CBRE acquired Norland for approximately £265.5 million ($434.3 million) paid in cash at closing (which included a payment in respect of an excess working capital adjustment and related items), plus 362,916 shares of CBRE common stock issued at closing. In addition, CBRE may pay up to £50.0 million ($81.8 million) in deferred contingent consideration in cash. CBRE financed the acquisition with cash on hand, which totaled more than $500 million as of September 30, 2013, and borrowings under its revolving credit facility, which had approximately $1.1 billion available at the end of the third quarter of 2013.