CBRE will acquire a 60% ownership interest in Turner & Townsend, and enter into a strategic partnership with the UK-based programme, project and cost management business.
CBRE will pay cash for its stake cash, with 55% of the £960m to be paid upon closing of the deal.
Turner & Townsend said that the transaction preserves its existing leadership team, heritage, operational independence and partnership structure, which will hold the remaining 40% ownership interest. The transaction values Turner & Townsend at approximately £1.6bn and is expected to be immediately accretive to CBRE’s earnings.
Turner & Townsend provides programme management, cost consultancy, project management and advisory consulting services for clients in 46 countries. It operates across three business segments: real estate (62% of net revenue), infrastructure (31% of net revenue) and natural resources (7% of net revenue). For the 12 months ended 30th April 2021, Turner & Townsend’s net revenue totalled approximately £665m and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) amounted to approximately £124m.
“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.”
Vincent Clancy, chairman and chief executive officer of Turner & Townsend, said: “The combined partnership of CBRE and Turner & Townsend will create the premier global provider of program, project and cost management from day one. Turner & Townsend will continue to offer independent advice, solutions and program level thinking across the Real Estate, Infrastructure and Natural Resources sectors. Our global network means this applies everywhere in the world – we operate where our clients operate. The combination of unrivalled global footprint, sector expertise, commitment to investment and an incredible team of people will make CBRE and Turner & Townsend the go-to firms in our industry.”