October 5, 2017
CBRE Group, Inc. (NYSE: CBG) today announced a definitive agreement to acquire Heery International, Inc. (Heery), the project management and design engineering business of the international infrastructure group, Balfour Beatty LLC.
Heery, based in Atlanta, is a leader in providing project management, design and commissioning services across the U.S., with a wide range of corporate, government, healthcare, sports, aviation and education clients.
“This acquisition advances our strategy to grow our project management expertise and capabilities. Heery has a strong track record of client service with many longstanding relationships spanning decades,“ said Mike Lafitte, CBRE’s Global Group President, Lines of Business. “Their deep project management expertise and strong leadership team are a great complement to CBRE’s existing capabilities in both our local market and account-based project management services.”
“We are particularly excited about Heery’s ability to deepen our relationships in the public and educational sectors, grow our position in such new vertical segments as aviation and sports, and add capabilities and expertise in design engineering services,” he added.
Upon closing of the acquisition, Heery will continue to be led by its President Theodore Sak and its COO Glenn Jardine. Heery’s professionals will collaborate closely with CBRE’s project management teams who deliver services in local markets across the U.S. as well as its professionals who execute account-based project management programs through its corporate outsourcing business line, Global Workplace Solutions.
“We believe our expertise is a great fit with CBRE’s focus on delivering comprehensive, fully integrated commercial real estate solutions,” said Mr. Jardine. “We look forward to working with our new CBRE colleagues across the country to provide these solutions to a broader range of corporate and institutional clients than ever before and achieving further growth in our core markets.”
Founded in 1952, Heery has approximately 535 employees in 19 U.S. offices, providing services including project management, architecture, engineering, interior design, and commissioning.
CBRE maintains the largest network of professional commercial real estate project managers worldwide. Its more than 5,000 specialists, including 350+ LEED-certified professionals, oversaw projects with a total contract value of more than $42 billion worldwide in 2016.
The transaction is expected to close during the fourth quarter, subject to customary closing conditions. The business that CBRE is acquiring generally does not include, or CBRE is indemnified for, the at-risk construction management business within Heery International.
The purchase price is approximately $57 million. This reflects a multiple of approximately 6 times projected 2017 adjusted EBITDA attributed to the acquired Heery business, after giving effect for anticipated run-rate cost synergies as well as the net present value of expected tax benefits.
Certain of the statements in this release regarding the agreement to acquire of Heery International Inc. (Heery) 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. Forward-looking statements are made based on our management’s expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Accordingly, actual performance, results and events may vary materially from those indicated in forward-looking statements, and you should not rely on forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in forward-looking statements, including, but not limited to, our ability to successfully integrate Heery professionals with our existing project management operations in the U.S., as well as other risks and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (SEC). Any forward-looking statements speak only as of the date of this release. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we 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 other risks and uncertainties to our business in general, please refer to our SEC filings, including our Form 10-K for the fiscal year ended December 31, 2016, and our Form 10-Q for the quarter ended June 30, 2017. Such filings are available publicly and may be obtained from our website at www.cbre.com or upon request from the CBRE Investor Relations Department at firstname.lastname@example.org.