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CBRE to acquire Norland for $400 million

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November 12, 2013 06:55 PM EST | AP


LOS ANGELES (AP) — Real estate investment firm CBRE Group Inc. said Tuesday that it plans to acquire British commercial building engineering firm Norland Managed Services Ltd. in a mostly cash deal worth up to 300 million pounds ($480 million).

The deal will expand the capabilities and geographic reach of CBRE, which is based in Los Angeles.

CBRE said it will pay 250 million pounds for the company, plus up to 50 million pounds in deferred contingent consideration as well as a payment for excess working capital and related items. About 5.6 million pounds of the total will be paid in CBRE stock to Norland senior management.

Norland, founded in London in 1984, provides building technical engineering services to commercial real estate owners and others in the UK and Ireland, as well as some clients in the United States and Singapore.

The company specializes in services for critical environments, such as data centers and trading floors. It has 4,000 employees in 14 offices and serves more than 300 clients. It reported revenue of about 385 million pounds in its last fiscal year.

The deal is expected to close before the end of 2013.

Norland's existing operations will be renamed as CBRE/Norland once the transaction is complete. Ian Entwisle, CEO of Norland, will lead the CBRE/Norland operations as CEO.

CBRE anticipates that the deal will add moderately to its earnings immediately.

Shares of CBRE added 7 cents in extended trading after the deal was announced. Its stock fell 40 cents to close at $22.03.