CBRE Could Pay More Than $1B To Buy Global Facilities Management Firm

CBRE Group has inked a deal to acquire J&J Worldwide Services, a provider of facilities maintenance and other services for over 250 hospitals, clinics and military installations belonging to the federal government, for an initial purchase price of $800M in cash.

CBRE will pay another $250M in 2027, provided J&J meets performance standards specified in the sale agreement by that time. The seller is Washington, D.C.-based Arlington Capital Partners.

Based in Tennessee, J&J's operations include aseptic cleaning, maintenance and engineering services, as well as a range of facility management, operational support and asset management services for the Department of Defense.

The company provides healthcare maintenance services at Brooke Army Medical Center and Walter Reed National Military Medical Center, as well as support services at the U.S. Naval Academy and a number of military bases worldwide. J&J also provides engineering services at the Naval Medical Center Portsmouth and the Naval Support Facility Diego Garcia, among other places.

“The acquisition is consistent with key elements of our M&A strategy that focus on enhancing our technical services capabilities, increasing revenue resilience and secular growth and expanding our government client base within Global Workplace Solutions,” CBRE CEO Bob Sulentic said in a statement.

The J&J acquisition is the latest for CBRE, which over the last year bought British management and development firm Sovereign Centros, French company WorkInProgress and Millman National Land Services, an Ohio-based land survey specialist.

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