Real estate deal
CBRE acquires 60% stake in Turner & Townsend
CBRE said the deal will be transformational
Commercial property agent CBRE is acquiring a 60% stake in the consultancy Turner & Townsend for £960 million in cash.
It said the deal will preserve Turner & Townsend’s existing “leadership team, heritage, operational independence and partnership structure”.
Turner & Townsend’s partners will hold the remaining 40% stake in the business which the deal values at £1.6 billion. It is expected to complete in the fourth quarter.
For the 12 months ended 30 April 2021, Turner & Townsend’s net revenue totalled approximately £665m and adjusted EBITDA approximately £124m.
Vincent Clancy, chairman and chief executive of Turner & Townsend, will continue to run the company on a day-to-day basis and all its services will continue to be delivered under the Turner & Townsend brand.
However, it will be governed by a new board, consisting of three CBRE executives: Bob Sulentic, CBRE’s president and chief executive officer; Jack Durburg, global chief executive of CBRE GWS; and Chandra Dhandapani, chief transformation officer and chief operating officer of CBRE GWS.
The board will also include three Turner & Townsend executives: Vincent Clancy, finance director Jeremy Lathom-Sharp and chief operating officer James Dand.
Bob Sulentic, CBRE’s president and chief executive, said: “This is a transformational transaction for our project management business in terms of both breadth and scale of capabilities.”
Mr Clancy added: “Turner & Townsend will continue to offer independent advice, solutions and programme-level thinking across the real estate, infrastructure and natural resources sectors.
“Our global network means this applies everywhere in the world – we operate where our clients operate.
Morgan Stanley is acting as financial adviser and Simpson Thacher & Bartlett and Dentons are acting as legal advisers to CBRE. Rothschild is acting as financial adviser and Pinsent Masons as legal adviser to Turner & Townsend.