CBRE to buy £960m stake in Turner & Townsend

CBRE is set to acquire a 60% stake in London-based project manager Turner & Townsend in a £960m cash deal. The agent, which will pay 55% of the amount upon closing, will form a strategic partnership with the project and cost management firm.  Turner & Townsend’s existing leadership team, heritage, operational independence and partnership structure will be retained. It will hold the remaining 40% ownership interest.  It will be governed by a new board of directors, consisting of three CBRE executives and three Turner & Townsend executives. These are: CBRE president and chief executive Bob Sulentic CBRE global chief executive of global workplace solutions Jack Durburg CBRE chief transformation officer and GWS chief operating officer Chandra Dhandapani Turner & Townsend chairman and chief executive Vincent Clancy Turner & Townsend finance director Jeremy Lathom-Sharp Turner & Townsend chief operating officer James Dand. The deal values Turner & Townsend at around £1.6bn. Its net revenue totalled around £665m in the 12 months ended 30 April, while adjusted EBITDA was around £124m. The firm has clients in 46 countries and operates across three business segments: real estate, which accounts for 62% of net revenue, infrastructure (31%) and natural resources (7%). The transaction is subject to regulatory approvals and other closing conditions. The deal is expected to complete in the fourth quarter this year. Bob Sulentic, president and chief executive of CBRE, said: “This is a transformational transaction for our project management business in terms of both breadth and scale of capabilities.  “We see sizeable 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 realise our ambitions for this business.”  Turner & Townsend said the partnership will provide the business with the opportunity to materially expand its US operations, leveraging from CBRE’s existing occupier and investor relationships in the market. Turner & Townsend chairman and chief executive Vincent Clancy said: “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.” Morgan Stanley, Simpson Thacher & Bartlett and Dentons are advising CBRE. Rothschild & Co and Pinsent Masons are acting for Turner & Townsend. To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Photo © CBRE