Bulletin: CBRE Group Inc.'s Acquisition Of J&J Worldwide Services Raises Leverage Modestly, Expands Facilities Management Business

NEW YORK (S&P Global Ratings) Feb. 5, 2024--S&P Global Ratings today said CBRE Group Inc.'s (CBRE) announced acquisition of J&J Worldwide Services (J&J) will increase its size and scale in facilities management and raise leverage modestly. CBRE (BBB+/Stable/--) announced a definitive agreement to acquire J&J--a provider of engineering services, base support operations, and facilities maintenance for the U.S. federal government--for approximately $800 million in cash and a potential earn-out of up to $250 million. The acquisition will be financed with CBRE's cash and revolver capacity. CBRE expects the transaction to be completed in the coming months, subject to regulatory approvals. The acquisition of J&J represents a continued expansion of CBRE's Global Workplace Solutions segment, which includes facilities and project management.

...February 5, 2024 NEW YORK (S&P Global Ratings) Feb. 5, 2024--S&P Global Ratings today said CBRE Group Inc.'s (CBRE) announced acquisition of J&J Worldwide Services (J&J) will increase its size and scale in facilities management and raise leverage modestly. CBRE (###+/Stable/--) announced a definitive agreement to acquire J&J--a provider of engineering services, base support operations, and facilities maintenance for the U.S. federal government--for approximately $800 million in cash and a potential earn-out of up to $250 million. The acquisition will be financed with CBRE's cash and revolver capacity. CBRE expects the transaction to be completed in the coming months, subject to regulatory approvals. The acquisition of J&J represents a continued expansion of CBRE's Global Workplace Solutions segment, which includes facilities and project management. While the facilities management business generates lower margins than CBRE's other transaction-based businesses, it provides a stable source...

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