CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm, has completed its acquisition of J&J Worldwide Services, a company that specializes in engineering services, base support operations and facilities maintenance for the U.S. federal government.
The deal, which was announced today by CBRE and Arlington Capital Partners, the private investment firm that sold J&J, is valued at $800 million in cash, plus a potential earn-out of up to $250 million, payable in 2027, subject to the acquired business meeting certain performance thresholds.
J&J Worldwide Services primarily serves the U.S. Department of Defense through long-term, fixed-price contracts. The company employs more than 3,300 people worldwide, serving more than 250 hospitals, clinics and military installations in the U.S. and abroad. Some of its clients include Brooke Army Medical Center, Walter Reed National Military Medical Center and the United States Naval Academy.
Bob Sulentic, chair & chief executive officer of CBRE, said that the acquisition is consistent with the company’s M&A strategy that focuses on enhancing its technical services capabilities, increasing its revenue resilience and secular growth, and expanding its government client base within its Global Workplace Solutions segment.
He added that J&J Worldwide Services has a 50-year record of outstanding technical service delivery, deep government contracting experience and long-term customer relationships.