CBRE has entered into a definitive agreement to acquire Norland Managed Services, a leading provider of commercial building technical engineering services in the UK and Ireland, for an initial £250 mln.
The purchase, which will be funded through cash on hand, borrowings under its existing revolving credit facility and £5.6 mln in CBRE common stock to Norland senior management, includes up to £50 mln of deferred contingent consideration.
CBRE anticipates that the transaction will be moderately accretive to its earnings immediately and will add market-leading capabilities for CBRE to self-perform building technical engineering services in its UK and European Global Corporate Services (GCS) business.
Bill Concannon, CBRE’s CEO of GCS, said: “Norland is a strong complement to our global platform. We will have the ability to self-perform building technical engineering services in Europe, as we already do for more than 850 mln ft² of client properties in North America, Latin America and Asia-Pacific. “This transaction will significantly enhance our service offering, enable us to provide an integrated suite of outsourcing services and deepen our relationships with global and multi-national occupiers.”
The Norland acquisition is expected to close before year end 2013 and is subject to clearance from the European Commission. BofA Merrill Lynch acted as sole financial adviser to CBRE, and Simpson Thacher & Bartlett LLP acted as CBRE’s legal advisors.