On buying spree, CBRE adds
ESI + Johnson Controls unit

FROM PRESS RELEASES | April 27, 2015

Los Angeles, April 2015 – CBRE Group, Inc. (NYSE: CBG) this month announced that it has acquired Environmental Systems, Inc. (ESI), a leading systems integrator and provider of energy management services in the United States.

ESI develops innovative solutions that enable commercial property occupiers and owners to efficiently manage their building systems and remotely monitor and analyze energy usage in real time to identify and achieve potential savings. ESI is providing analytics-driven managed services on over 180 million sq ft of facilities at over 2,800 sites throughout the U.S.

“ESI complements our existing suite of facilities-related outsourcing services. Our clients increasingly look to us to leverage new and existing controls -- and the data that can be extracted from systems -- and remote monitoring to drive greater energy efficiency,” said Bill Concannon, CEO, Global Corporate Services, CBRE. “This is a core strategy and growing capability for CBRE. ESI's professionals will enhance our expertise and service offering in energy & sustainability management.”

Founded in 1986 and based in Brookfield WI, ESI offers a wide range of technology, solutions and services in the areas of systems integration, building automation, energy management, advanced analytics, security systems, and support services. The company serves a wide range of facility types including office, retail, industrial, critical environments, health care and education.

“We value long-term relationships with our customers and work closely with them to reduce costs, improve efficiency and maximize their facility investment,” said Paul Oswald, president, ESI. “Joining CBRE’s high-quality, integrated Energy & Sustainability service offering will further our goal of providing superior solutions that meet the ever-evolving needs of our clients.”

acquisition of Johnson Controls unit pending

The news of ESI follows CBRE’s March 31st announcement of a definitive agreement to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc. (NYSE: JCI), expected to close in the late third quarter or early fourth quarter of 2015. GWS is a market-leading provider of integrated facilities management solutions for major occupiers of commercial real estate. Both transactions underscore CBRE’s commitment to provide global, industry-leading facilities management solutions -- including energy & sustainability products and services -- for its clients.

From the March 31, 2015 press release

CBRE Group, Inc. (NYSE:CBG) today announced that it has entered into a definitive agreement to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc. (NYSE: JCI). GWS is a market-leading provider of Integrated Facilities Management solutions for major occupiers of commercial real estate and has significant operations around the world. The purchase price is $1.475 billion, payable in cash, or $1.3 billion net of the present value of estimated tax benefits, and with customary post-closing adjustments for working capital and other items.

GWS will operate as part of CBRE’s Global Corporate Services (GCS) business, which has increased revenue at a double-digit compound annual growth rate over the last decade, as more major corporations and other institutions outsource their real estate services. When the transaction is completed, the full range of combined occupier services – notably including CBRE’s leasing expertise and GWS’s engineering expertise – will be available to the clients of both companies.

“The exceptionally talented GWS team will greatly enhance our service offering for occupiers around the world,” said Bob Sulentic, President & CEO of CBRE. “With GWS, we further our ability to create advantages for occupier clients by aligning every aspect of how they lease, own, use and operate real estate to enhance their competitive position.”

CBRE and Johnson Controls also announced a 10-year strategic relationship. CBRE will 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 sq ft and Johnson Controls will offer a factory-direct relationship on HVAC equipment, building automation systems and related services to CBRE for its managed properties. In addition, the companies will jointly fund an innovation lab that will develop leading-edge energy management solutions to lower costs and enhance their clients’ work environments. The joint innovation lab will evaluate, connect and leverage products, services and energy data to create value for occupiers and investors of real estate.

“Johnson Controls and CBRE will jointly fund an innovation lab that will develop leading-edge energy management solutions to lower costs and enhance their clients’ work environments. ”

“Clients are increasingly asking us for fully integrated real estate and facilities solutions, which includes self-performing building technical services across their global portfolios,” said Bill Concannon, CEO of CBRE's GCS unit. “GWS will further improve our ability to serve clients in more than 50 countries with a market-leading capability in all services, industry sectors and property types. The GWS team is a great fit for our business. They bring leadership and expertise in many areas that are vital to our clients, including engineering excellence, global supply chain management, mission-critical facilities and energy management.”

GWS serves a blue-chip roster of global corporations, particularly in the industrial/manufacturing, life-sciences, and technology sectors. Clients typically purchase these services under five-year contracts, and the average tenure for GWS’s 50 largest clients is 12 years.

Upon closing, John Murphy, GWS’s president, will join CBRE as global chief operating officer, GCS. “This combination will create a global market leader in the provision of value-added occupier services that enable clients to derive maximum value from their workplaces. Together, we will assure clients of high-quality, reliable, cost-efficient, comfortable and safe working environments no matter their core business mission,” said Mr. Murphy. “The fit between our two organizations – be it culture, values, a client-centered ethos, or our commitment to engaged and empowered employees – is outstanding. This fit will help accelerate our coming together to create new value for our clients and shareholders. I am extremely excited about our future as part of the first-class team at CBRE. ”

Together, CBRE and GWS will manage nearly 5 billion sq ft of real estate and corporate facilities globally, including 2.3 billion sq ft in the Americas, 1.2 billion sq ft in Europe, the Middle East & Africa and 1.4 billion sq ft in Asia Pacific. GWS, which has 16,000 employees worldwide, generated approximately $3.4 billion of revenue for the 12 months ended December 31, 2014.

About Johnson Controls Global WorkPlace Solutions

Johnson Controls Global WorkPlace Solutions (GWS) is a leading provider of facilities, corporate real estate and energy management for many of the world’s largest companies. The company creates business advantage for its customers through tailored solutions that optimize their real estate performance and employee productivity while reducing total occupancy costs. Its 16,000 employees have delivered over $3 billion in savings for its customers over the last 10 years and ensure the business continuity for the 1.2 billion square feet of real estate that the company manages in 55 countries.

ABOUT CBRE GROUP, INC.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.