CBRE to Acquire Majority Stake in British Management Firm Turner & Townsend for $1.3B
DALLAS — CBRE Group Inc. (NYSE: CBRE) has entered into an agreement to acquire a 60 percent interest in Turner & Townsend, a project management and advisory firm based in the United Kingdom, for $1.3 billion.
Upon the closing of the deal, which is expected to occur in the fourth quarter, Turner & Townsend’s executive management team, led by chairman and CEO Vincent Clancy, will continue to run the company’s day-to-day operations and retain a 40 percent equity stake.
In addressing the motivating factors behind the deal, Turner & Townsend cited the opportunity to expand its service offerings in the United States via the Dallas-based real estate giant’s platform of occupier and investor relationships.
Bob Sulentic, CBRE’s president and CEO, added that with public and private infrastructure investment at the top of the current U.S. political agenda, there are major growth opportunities in project management. “Turner & Townsend is by far the best firm to help us realize our ambitions for this business,” he says.
CBRE’s stock price opened at $91.35 per share on Wednesday, July 28, the first full day of trading after the deal was announced. Shares were trading at a high of $96.96 per share during the morning of Friday, July 30, up more than 100 percent from $42.20 per share a year ago.