CBRE Group, Inc. Announces Definitive Agreement to Acquire UK-Based Norland Managed Services LTD

  CBRE Group, Inc. Announces Definitive Agreement to Acquire UK-Based Norland
  Managed Services LTD

   Norland’s Engineering Expertise Significantly Advances CBRE’s Corporate
 Outsourcing Platform in EMEA; Adds Strong Capabilities in Managing Critical
                            Environment Facilities

Business Wire

LOS ANGELES -- November 12, 2013

CBRE Group, Inc. (NYSE:CBG) today announced that it has entered into a
definitive agreement to acquire Norland Managed Services Ltd (Norland), a
leading provider of commercial building technical engineering services in the
United Kingdom (UK) and Ireland, for £250 million (approximately $400 million)
plus up to £50 million (approximately $80 million) of deferred contingent
consideration as well as a payment for excess working capital and related
items. The purchase price is payable in cash, except for £5.6 million
(approximately $9 million) that is payable in CBRE common stock to Norland
senior management. The acquisition will add market-leading capabilities for
CBRE to self-perform building technical engineering services in its UK and
European Global Corporate Services (GCS) business, providing its client base
with fully-integrated outsourcing services in the region.

Norland, founded in London in 1984, provides building technical engineering
services to commercial real estate owners and occupiers primarily in the UK
and Ireland and also has a growing roster of customers in the United States
and Singapore. Norland is particularly well known for its expertise in
critical environments, such as data centers and trading floors - a growing
market segment requiring specialized knowledge and experience. Its 4,000
employees in 14 offices serve more than 300 clients.

Bill Concannon, CBRE’s CEO of GCS, said: “Norland is a strong complement to
our global platform. We will have the ability to self-perform building
technical engineering services in Europe, as we already do for more than 850
million sq. ft. of client properties in North America, Latin America and
Asia-Pacific. This transaction will significantly enhance our service
offering, enable us to provide an integrated suite of outsourcing services and
deepen our relationships with global and multi-national occupiers.”

“Norland significantly advances our corporate outsourcing offering in Europe,”
said Mike Strong, CBRE’s CEO of EMEA (Europe, the Middle East & Africa). “The
Norland team has built an exceptional reputation for managing the building
technical engineering elements of occupier and investor portfolios. By
combining our complementary expertise we will be able to offer clients
unrivalled access to a fully-integrated, best-in-class suite of real estate
services in the region.”

Following the closing of the transaction, Norland’s existing operations will
operate as CBRE | Norland, reflecting the combined strengths of CBRE’s
prominent global brand and Norland’s reputation for expertise in building
technical engineering services. Norland serves a blue-chip roster of clients,
many of which are also served by CBRE. Norland provides services on a number
of CBRE-managed accounts, including Bank of America Merrill Lynch and State
Street Corporation.

“Our firms fit together very well, both culturally and operationally,” said
Ian Entwisle, CEO of Norland. “We know each other well, and both firms are
highly focused on delivering exceptional customer service and value. By
uniting our building technical engineering expertise with CBRE’s broad service
offering and global reach, we foresee significant opportunities to expand our
client base and accelerate our growth.”

A large near-term opportunity is to bring Norland’s services to CBRE’s client
base in continental Europe, added Mr. Entwisle, who will lead the CBRE |
Norland operations as CEO.

Norland reported revenue of £385 million (approximately $616 million) for its
fiscal year ended April 5, 2013. Revenue has grown at a double-digit rate
every year over the last ten years with revenue and profit growth over this
period exceeding a 20% compound annual growth rate. Growth has come from
corporations turning over the management of their real estate to the highest
quality third-party specialists. Norland typically serves clients under
long-term contracts. High-value integrated client services with steady
year-over-year growth fits nicely within CBRE’s growth strategy.

CBRE anticipates that the transaction will be moderately accretive to its
earnings immediately and expects to finance the acquisition with cash on hand
and borrowings under its existing revolving credit facility. CBRE ended the
third quarter of 2013 with more than $500 million of cash on its balance sheet
and approximately $1.1 billion available on its revolving credit facility.

The Norland acquisition is expected to close before year end 2013 and is
subject to clearance from the European Commission. BofA Merrill Lynch acted as
sole financial advisor to CBRE, and Simpson Thacher & Bartlett LLP acted as
CBRE’s legal advisors.

About Norland Managed Services Ltd

Norland Managed Services Ltd is one of the UK and Ireland’s leading providers
of facilities, energy and project management services with revenues of £385
million (approximately $616 million) for its fiscal year ended April 5, 2013.
The company operates from a strategic network of regional offices throughout
the UK, Ireland, the U.S. and Singapore. 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, large stadiums and
critical environments. Since its formation in 1984, Norland has achieved
consistent annual growth, with its success built on high levels of customer
service and a major focus on people and technical skills. 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 –
increasing 49 places from its position last year. For more information about
Norland, please visit

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered
in Los Angeles, is the world’s largest commercial real estate services and
investment firm (in terms of 2012 revenue). The Company has approximately
37,000 employees (excluding affiliates), and serves real estate owners,
investors and occupiers through more than 300 offices (excluding affiliates)
worldwide. CBRE offers strategic advice and execution for: property sales and
leasing; corporate services; property, facilities and project management;
mortgage banking; appraisal and valuation; development services; investment
management; and research and consulting. Please visit our website at

“Safe Harbor” Statement Under the U.S. Private Securities Litigation Reform
Act of 1995

Certain of the statements in this release regarding the acquisition of Norland
Managed Services Ltd that do not concern purely historical data are
forward-looking statements within the meaning of the ''safe harbor''
provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve risks and uncertainties, including, but not
limited to, the expected closing date of the acquisition and the ability of
the parties to successfully integrate Norland with CBRE’s existing facilities
management and outsourcing operations in Europe and globally, as well as other
risks and uncertainties discussed in CBRE’s filings with the U.S. Securities
and Exchange Commission (SEC). Any forward-looking statements speak only as of
the date of this release and, except to the extent required by applicable
securities laws, CBRE expressly disclaims any obligation to update or revise
any of them to reflect actual results, any changes in expectations or any
change in events. If CBRE does update one or more forward-looking statements,
no inference should be drawn that it will make additional updates with respect
to those or other forward-looking statements. For additional information
concerning factors that may cause actual results to differ from those
anticipated in the forward-looking statements and risks to CBRE’s business in
general, please refer to CBRE’s SEC filings, including its Annual Report on
Form 10-K for the fiscal year ended December 31, 2012 and its Quarterly Report
on Form 10-Q for the quarter ended September 30, 2013. Such filings are
available publicly and may be obtained off CBRE's website at or
upon request from the CBRE Investor Relations Department at


CBRE Group, Inc.
Gil Borok, 213-613-3730
Chief Financial Officer
Nick Kormeluk, 949-809-4308
Investor Relations
Steve Iaco, 212-984-6535
Corporate Communications
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