CBRE Group, Inc. Enters into Definitive Agreement to Acquire Heery International, Inc.
October 05 2017 - 2:08AM
Business Wire
CBRE Group, Inc. (NYSE: CBG) today announced a definitive
agreement to acquire Heery International, Inc. (Heery), the project
management and design engineering business of the international
infrastructure group, Balfour Beatty LLC.
Heery, based in Atlanta, is a leader in providing project
management, design and commissioning services across the U.S., with
a wide range of corporate, government, healthcare, sports, aviation
and education clients.
“This acquisition advances our strategy to grow our project
management expertise and capabilities. Heery has a strong track
record of client service with many longstanding relationships
spanning decades,“ said Mike Lafitte, CBRE’s Global Group
President, Lines of Business. “Their deep project management
expertise and strong leadership team are a great complement to
CBRE’s existing capabilities in both our local market and
account-based project management services.”
“We are particularly excited about Heery’s ability to deepen our
relationships in the public and educational sectors, grow our
position in such new vertical segments as aviation and sports, and
add capabilities and expertise in design engineering services,” he
added.
Upon closing of the acquisition, Heery will continue to be led
by its President Theodore Sak and its COO Glenn Jardine. Heery’s
professionals will collaborate closely with CBRE’s project
management teams who deliver services in local markets across the
U.S. as well as its professionals who execute account-based project
management programs through its corporate outsourcing business
line, Global Workplace Solutions.
“We believe our expertise is a great fit with CBRE’s focus on
delivering comprehensive, fully integrated commercial real estate
solutions,” said Mr. Jardine. “We look forward to working with our
new CBRE colleagues across the country to provide these solutions
to a broader range of corporate and institutional clients than ever
before and achieving further growth in our core markets.”
Founded in 1952, Heery has approximately 535 employees in 19
U.S. offices, providing services including project management,
architecture, engineering, interior design, and commissioning.
CBRE maintains the largest network of professional commercial
real estate project managers worldwide. Its more than 5,000
specialists, including 350+ LEED-certified professionals, oversaw
projects with a total contract value of more than $42 billion
worldwide in 2016.
The transaction is expected to close during the fourth quarter,
subject to customary closing conditions. The business that CBRE is
acquiring generally does not include, or CBRE is indemnified for,
the at-risk construction management business within Heery
International.
The purchase price is approximately $57 million. This reflects a
multiple of approximately 6 times projected 2017 adjusted EBITDA
attributed to the acquired Heery business, after giving effect for
anticipated run-rate cost synergies as well as the net present
value of expected tax benefits.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500
company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (based on 2016
revenue). The company has more than 75,000 employees (excluding
affiliates), and serves real estate investors and occupiers through
approximately 450 offices (excluding affiliates) worldwide. CBRE
offers a broad range of integrated services, including facilities,
transaction and project management; property management; investment
management; appraisal and valuation; property leasing; strategic
consulting; property sales; mortgage services and development
services. Please visit our website at www.cbre.com.
Forward-Looking Statements
Certain of the statements in this release regarding the
agreement to acquire of Heery International Inc. (Heery) that do
not concern purely historical data are forward-looking statements
within the meaning of the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are made based on our management’s expectations and
beliefs concerning future events affecting us and are subject to
uncertainties and factors relating to our operations and business
environment, all of which are difficult to predict and many of
which are beyond our control. Accordingly, actual performance,
results and events may vary materially from those indicated in
forward-looking statements, and you should not rely on
forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in forward-looking statements, including, but not limited
to, our ability to successfully integrate Heery professionals with
our existing project management operations in the U.S., as well as
other risks and uncertainties discussed in our filings with the
U.S. Securities and Exchange Commission (SEC). Any forward-looking
statements speak only as of the date of this release. We assume no
obligation to update forward-looking statements to reflect actual
results, changes in assumptions or changes in other factors
affecting forward-looking information, except to the extent
required by applicable securities laws. If we do update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. For additional information concerning
factors that may cause actual results to differ from those
anticipated in the forward-looking statements and other risks and
uncertainties to our business in general, please refer to our SEC
filings, including our Form 10-K for the fiscal year ended December
31, 2016, and our Form 10-Q for the quarter ended June 30, 2017.
Such filings are available publicly and may be obtained from our
website at www.cbre.com or upon request from the CBRE Investor
Relations Department at investorrelations@cbre.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171004006509/en/
CBRE Group, Inc.Brad BurkeInvestor
Relations+1-215-921-7436brad.burke@cbre.comorSteve
IacoCorporate
Communications+1-212-984-6535steven.iaco@cbre.com
CBRE Group, Inc. (NASDAQ:CBRE)
Historical Stock Chart
From Mar 2024 to Apr 2024
CBRE Group, Inc. (NASDAQ:CBRE)
Historical Stock Chart
From Apr 2023 to Apr 2024