Los Angeles-based CBRE Group Inc. has entered into a definitive agreement to acquire Norland Managed Services Ltd., a provider of commercial building technical engineering services in the U.K. and Ireland.
CBRE will acquire Norland for EUR 250 million (approximately $400 million), plus up to EUR 50 million (approximately $80 million) of deferred contingent consideration, as well as a payment for excess working capital and related items.
According to CBRE, the acquisition will add capabilities for CBRE to self-perform building technical engineering services in its U.K. and European Global Corporate Services (GCS) business, providing clients with outsourcing services in the region.
Bill Concannon, CBRE's CEO of GCS, comments, "Norland is a strong complement to our global platform. 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."
Following the closing of the transaction, Norland's existing operations will operate as CBRE | Norland, according to CBRE.
"Our firms fit together very well, both culturally and operationally," says Ian Entwisle, CEO of Norland. A large near-term opportunity is to bring Norland's services to CBRE's client base in continental Europe, adds Entwisle, who will lead the CBRE | Norland operations as CEO.
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 advisor to CBRE, and Simpson Thacher & Bartlett LLP acted as CBRE's legal advisors.
Earlier this year, CBRE expanded its client base in Europe with the acquisition of property management firm IMPACT-CORTI in Slovakia and the Czech Republic.