CBRE has announced plans to merge its project management business with its majority-owned subsidiary Turner & Townsend.
CBRE acquired a 60% ownership interest in Turner & Townsend in November 2021. Upon closing the transaction, CBRE will own 70% of the combined Turner & Townsend/CBRE Project Management business, with the Turner & Townsend partners holding 30%.
The cost of the incremental investment in Turner & Townsend/CBRE Project Management is approximately $70m, exclusive of deal costs.
The combined business will be led by Vincent Clancy, Turner & Townsend’s chairman and chief executive officer, who will continue to report to a board controlled by CBRE and comprised of senior executives from both CBRE and Turner & Townsend. Clancy will be appointed to the CBRE board upon closing the transaction.
Bob Sulentic, CBRE’s chair and chief executive officer, said: “Unifying our project management business will create an offering that is unmatched for its scale and breadth of capabilities, with more than 20,000 employees serving clients in over 60 countries. Powerful secular trends, particularly increased spending on infrastructure, green energy, and employee experience, are growth catalysts for this business and we are well positioned to capitalise on this significant opportunity.”
“Vince is an exemplary leader who has guided Turner & Townsend to great success. Putting CBRE’s extensive global project management resources and capabilities under Vince will strengthen our value proposition for clients and advance our growth ambitions.”
Clancy (pictured) added: “Our ambition since joining forces with CBRE in 2021 has been to create the premier, differentiated programme, project and cost management capability globally. We have made exceptional progress towards this goal and our revenue and profit have grown significantly in the last three years. Turner & Townsend’s momentum will continue to grow with the combining of two great businesses into one integrated, pure play project management capability. Our combined depth of talent and resources, global footprint, sector expertise and commitment to excellence will be second to none in project and programme management.”
The transaction is expected to close around the end of the year subject to the satisfaction of regulatory and other customary conditions and completion of required employee consultations in certain jurisdictions.
