FMA News & Press Releases
CBRE Group, Inc. closes acquisition of Norland Managed Services Ltd
Published: Monday 23rd December 2013
Source: Norland Managed Services
News Release
23rd December 2013
CBRE GROUP, INC. CLOSES ACQUISITION
OF NORLAND MANAGED SERVICES LTD
Norland’s Engineering Expertise Enables CBRE to Offer Fully-Integrated Outsourcing Services in EMEA and Strong Capabilities in Critical Environment Facilities Management
Los Angeles, CA, December 23, 2013 — CBRE Group, Inc. (NYSE:CBG) today announced that it has closed the acquisition of Norland Managed Services Ltd (Norland), a best-in-class provider of technical engineering services for commercial buildings in the United Kingdom (UK) and Ireland, with a growing customer base in the United States and Singapore.
Norland’s market-leading capabilities enable CBRE to self-perform technical engineering services for commercial buildings and to provide its clients with fully-integrated outsourcing services in Europe. Norland also provides CBRE with increased expertise in the management of critical environments, such as data centres and trading floors - a growing market segment requiring specialized knowledge and experience.
Norland will be part of CBRE’s Global Corporate Services (GCS) business in EMEA (Europe, the Middle East & Africa), which serves leading occupiers across the region. The business will continue to be led by its CEO, Ian Entwisle.
“We are very pleased to be part of the world’s leading commercial real estate company,” said Mr Entwisle. “CBRE provides an ideal platform from which we can better serve our clients and further grow our business. There are tremendous opportunities ahead – for us and our clients.”
“We are excited to welcome our new Norland colleagues to CBRE,” said Bill Concannon, CBRE’s CEO of GCS. “Occupiers are seeking to consolidate their supply chains by selecting a single property adviser that can offer them all of the services they need. The combined strength of Norland’s technical expertise and our broad service offering will enable us to provide all of the benefits of a fully integrated offering of outsourcing services to clients in EMEA, as we already do in other regions.”
“The closing of the Norland acquisition is a key milestone in the growth of our EMEA business,” said Mike Strong, CBRE’s CEO of EMEA. “Over a number of years, we have worked to broaden the range of services we offer to our clients and to diversify our revenue base. Norland fulfils an integral part of our strategy, and we look forward to working with Ian and his talented team to offer clients access to an unmatched suite of best-in-class services.”
Norland has increased both revenue and profits at a compound annual growth rate of more than 20% over the past decade. This growth has been fuelled by corporations and other large occupiers retaining third-party specialists to manage their real estate. Norland typically serves these clients under long-term contracts. For fiscal year 2013 (ended April 5, 2013), Norland reported revenue of £384.8 million (approximately $629.3 million).
As previously announced, CBRE acquired Norland for approximately £265.5 million ($434.3 million) paid in cash at closing (which included a payment in respect of an excess working capital adjustment and related items), plus 362,916 shares of CBRE common stock issued at closing. In addition, CBRE may pay up to £50.0 million ($81.8 million) in deferred contingent consideration in cash. CBRE financed the acquisition with cash on hand, which totalled more than $500 million as of September 30, 2013, and borrowings under its revolving credit facility, which had approximately $1.1 billion available at the end of the third quarter of 2013.
About Norland
- Norland Managed Services is one of the UK and Ireland’s leading providers of facilities, energy and project management services with revenues in excess of £384 million
- The company operates from a strategic network of regional offices throughout the UK, Ireland, Europe and the US
- A dedicated team of highly trained and experienced staff maintain and enhance the capital assets of major national and global businesses. These range from single floors in multi-occupied buildings to substantial property estates and large stadia
- Since its formation in 1984, Norland has achieved consistent annual growth, its success being built on high levels of customer service and a major focus on people and technical skills
- Norland is a 2013 CIBSE award winner for ‘Contractor of the Year’, a 2012 CIBSE Award winner for “Training for Building Performance” and a 2011 Green Apple Award winner for “Property Management – Energy Reduction”
- Norland is ranked 53rd in The Sunday Times HSBC Top Track 250 league table, which ranks Britain’s leading mid-market private companies with the biggest sales – leaping 49 places from 102nd place last year.
- For more information about Norland, please visit www.norlandmanagedservices.co.uk
For further information please contact:
Samia Choudhury
Marketing and Communications Manager
Norland
[email protected]
+44 (0)207 871 9318