Milwaukee — Johnson Controls has completed the sale of its Global Workplace Solutions (GWS) business to CBRE Group for $1.475 billion. Global Workplace Solutions is one of the world’s largest providers of facilities management services.
The sale 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-foot portfolio of real estate and corporate facilities managed globally by CBRE and GWS.
“The sale of Global Workplace Solutions goes beyond its transactional value, as it represents an investment by Johnson Controls to grow its core building business, at the same time forging a strategic partnership with CBRE that will deliver long term benefits to both companies,” says Alex Molinaroli, CEO of Johnson Controls.
Additionally, the companies will jointly provide $40 million over 10 years to fund a building 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.
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.
BofA Merrill Lynch acted as the financial advisor to Johnson Controls, with Wachtell, Lipton, Rosen & Katz serving as legal advisor.
For more information, visit http://www.johnsoncontrols.com.
SOURCE: Johnson Controls