CBRE To Buy Johnson Controls'unit In $1.475 Billion Deal

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Commercial real estate investment company CBRE Group Inc. said Tuesday it has agreed to acquire the Global Workplace Solutions {GWS} business of Johnson Controls Inc. in a deal valued at $1.475 billion. GWS offers facilities management services to occupiers of commercial real estate. "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 Chief Executive Bob Sulentic said in a statement. GWS has about 16,000 employees worldwide and generated about $3.4 billion revenue in the year ended Dec. 31, 2014. CBRE expects the deal to be "materially accretive" to 2016 adjusted EPS, and to close in the late third quarter or early fourth quarter of 2015. CBRE shares were inactive in premarket trade, but are up 6.3% in the year so far, while the S&P 500 has gained 1.3%. Johnson Controls shares are up 3.1% in the year so far.

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