LOS ANGELES--(BUSINESS WIRE)--Oct. 5, 2017--
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
“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
“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.
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 firstname.lastname@example.org.
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Source: CBRE Group, Inc.
CBRE Group, Inc.