Update: "This agreement with CBRE is a great step
for both companies that will allow each of us to build upon our core strengths
to create new sources of value for our customers. GWS is a natural fit with
CBRE's offerings, and together they will strategically take the business
forward," said Alex Molinaroli, chairman and CEO of Johnson Controls.
"In addition, the new strategic partnership provides another new, strong
channel for Johnson Controls to serve CBRE and its clients around the world."
In connection with the agreement, CBRE will also provide
Johnson Controls with a "full suite of integrated corporate real estate
services (including facilities management, project management and transaction
services)" on more than 50 million square feet of Johnson Controls'
properties, according to a news release from Johnson Controls.
The companies will jointly provide $40 million over 10
years to fund an innovation lab that will "develop energy management
solutions to lower costs and enhance their clients' work environments,"
the release said. The joint innovation lab will evaluate, connect and leverage
products, services and energy data to create value for occupiers and investors
of real estate.
"This agreement is much more than a
transaction," Molinaroli added. "It reflects our commitment to grow
our buildings business, and is a long-term arrangement with significant mutual
value and a strategic partnership that will drive sustainable growth for both
companies."
Johnson Controls recently completed the sale of its
interests in two GWS-related joint ventures to Brookfield Asset Management Inc.
Including the joint venture transactions, aggregate proceeds from the GWS
business divestitures are $1.68 billion.
Johnson Controls said it will treat GWS as a discontinued
operation in the second quarter of fiscal 2015. The transaction is expected to
close near the end of its 2015 fiscal year and is subject to regulatory
clearance.
Initial report
Johnson Controls Inc. has reached an agreement to sell
Global WorkPlace Solutions to CBRE Group Inc. for $1.48 billion, a deal that
will mean significant HVAC work for its York County facility.
The deal includes a 10-year strategic relationship
between the two companies. Johnson Controls will be the "preferred
provider" of HVAC equipment, building automation systems and related
services to the 5-billion-square-feet portfolio of real estate and corporate
facilities managed globally by CBRE and GWS.
The agreement is expected to generate up to $500 million
of annual incremental revenue for the Johnson Controls building efficiency
business.
Johnson’s heating and air-conditioning facility in York
County falls under its building efficiency business. The company has facilities
in York and Franklin counties and is planning to build a new facility in
Hopewell Township, York County.
Johnson spokesman Fraser Engerman confirmed this morning
that the deal will mean plenty of work for the York County facility.
Source: Central
Penn Business Journal
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