American giant buys majority stake in Turner & Townsend
CBRE Group has acquired a 60% stake in UK consultant Turner & Townsend.
The deal is worth approximately £960M, with 55% paid upfront.
CBRE Group is an American commercial real estate services and investment firm and is widely regarded as the largest commercial real estate services company in the world.
The terms of the deal preserves Turner & Townsend’s existing leadership team, heritage, operational independence and partnership structure, which will hold the remaining 40% ownership interest. The existing Turner & Townsend management team will continue to run the company on a day-to-day basis, and all its services will continue to be delivered under the Turner & Townsend brand.
Turner & Townsend provides programme management, cost consultancy, project management and advisory consulting services for clients in 46 countries.
With its headquarters in the UK, Turner & Townsend has been involved in some of the country’s biggest infrastructure projects.
The consultant has worked closely with Crossrail since 2009 as part of the part of the Transcend joint venture, appointed as programme partner to provide integrated programme management services.
For the 12 months ended April 30, 2021, Turner & Townsend’s net revenue totalled approximately £665M and adjusted EBITDA totalled approximately £124M.
“This is a transformational transaction for our project management business in terms of both breadth and scale of capabilities,” said CBRE’s president and chief executive officer Bob Sulentic.
“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.”
Turner & Townsend chair and chief executive Vincent Clancy added: “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.”
The transaction is subject to regulatory approvals and other customary closing conditions. Closing is expected in the fourth quarter of this year.
(Credit: Rob Horgan. https://www.newcivilengineer.com/latest/american-giant-buys-majority-stake-in-turner-townsend-27-07-2021/).