Real estate services and investment firm CBRE is acquiring J&J Worldwide Services for up to $1.05bn (€978m), strengthening its market position in technical services.
CBRE has agreed to buy J&J from Arlington Capital Partners for $800m in cash, and will also pay an earnout payment of up to $250m, payable in 2027.
J&J provides engineering services, base support operations and facilities maintenance for the US federal government. The company serves more than 250 hospitals, clinics and military installations primarily in the US as well as in Europe, Asia, the Caribbean and Middle East.
Bob Sulentic, chair and CEO of CBRE, said: “The acquisition is consistent with key elements of our M&A strategy that focus on enhancing our technical services capabilities, increasing revenue resilience and secular growth and expanding our government client base within global workplace solutions.
“We are adding a company with deep government contracting experience, long-term customer relationships and a 50-year record of outstanding technical service delivery.”
Steve Kelley, CEO of J&J Worldwide Services, said: “Becoming part of CBRE provides J&J a great opportunity to continue building upon and expanding the solutions we provide our military customers at mission-critical facilities around the world.
“Arlington Capital Partners provided the industry expertise and guidance needed to scale our solutions at an unrivalled pace and prepare us for continued growth. We are excited about combining our capabilities and track record with CBRE’s to enhance our commitment to serving those that serve our nation.”
Michael Lustbader, managing partner at Arlington Capital Partners, said, “CBRE’s leadership in real estate services and global footprint position them to be an excellent home for J&J to build upon its achievements. J&J represents a prime example of Arlington’s ability to invest in founder-owned businesses and accelerate their growth through our industry expertise and network of world-class executives.”
Gordon Auduong, principal at Arlington Capital Partners, said: “J&J continues to prove itself as a highly durable industry leader, and its unparalleled commitment to its customers’ success has led to superior performance in support of US federal government infrastructure.
“We are excited to see how J&J and CBRE will continue to benefit from the secular tailwinds we identified during our initial investment and believe under CBRE’s stewardship that J&J is well-positioned to continue building on its success.”
To read the latest IPE Real Assets magazine click here.