Combination of UK consultant and CBRE division to create $3bn firm
CBRE has announced plans to combine its project management business with its majority-owned subsidiary Turner & Townsend, while also appointing Vincent Clancy, T&T chairman and chief executive, to the CBRE board.
It marks the latest step in the American real estate giant鈥檚 plan for the 76-year-old UK consultant, in which it has held a 60% ownership interest since November 2021.
The New York stock exchange-listed company valued Turner & Townsend (T&T) at 拢1.6bn when the deal was completed.
Upon closing the merger transaction, CBRE will own 70% of the combined business, with T&T partners holding the remaining share.
Clancy will lead the combined project management business, and will continue to report to a board controlled by CBRE and comprised of senior executives from both CBRE and Turner & Townsend.
The CBRE board of directors will appoint Clancy to the board once the transaction has closed.
CBRE鈥檚 entire project management business, including T&T, produced net revenue of about $3bn (拢2.4bn) in 2023.
Bob Sulentic, CBRE鈥檚 chair and chief executive officer, said: 鈥淯nifying our project management business will create an offering that is unmatched for its scale and breadth of capabilities, with more than 20,000 employees serving clients in over 60 countries.
鈥淧owerful secular trends, particularly increased spending on infrastructure, green energy, and employee experience, are growth catalysts for this business and we are well positioned to capitalise on this significant opportunity.
>> Read more: T&T partners received 拢18m payout following CBRE deal
鈥淰ince is an exemplary leader who has guided Turner & Townsend to great success,鈥� Sulentic added. 鈥淧utting CBRE鈥檚 extensive global project management resources and capabilities under Vince will strengthen our value proposition for clients and advance our growth ambitions.鈥�
The transaction is expected to close around year-end, subject to satisfaction of regulatory and other customary conditions and completion of required consultations with employee works councils in certain jurisdictions.
No comments yet