The price for the Norland business, which was founded in 1984, will also include up to £50m of deferred contingent consideration as well as a payment for excess working capital and related items.
CBRE says the acquisition will add market-leading capabilities for CBRE to self-perform building technical engineering services in its UK and European Global Corporate Services (GCS) business, providing its client base with fully-integrated outsourcing services.
Norland provides building technical engineering services to commercial real estate owners and occupiers primarily in the UK and Ireland and also has a growing roster of customers in the United States and Singapore. Norland is particularly well known for its expertise in critical environments, such as data centers and trading floors.
Norland has 4,000 employees in 14 offices serve more than 300 clients. It already provides services on a number of CBRE-managed accounts, including Bank of America Merrill Lynch and State Street Corporation.
Describing the acquisition Bill Concannon, CBRE’s CEO of GCS, said: “We will have the ability to self-perform building technical engineering services in Europe, as we already do for more than 850 million ft2 of client properties in North America, Latin America and Asia-Pacific. This transaction will significantly enhance our service offering, enable us to provide an integrated suite of outsourcing services and deepen our relationships with global and multi-national occupiers.”
Ian Entwisle, CEO of Norland. “We know each other well, and both firms are highly focused on delivering exceptional customer service and value. By uniting our building technical engineering expertise with CBRE’s broad service offering and global reach, we foresee significant opportunities to expand our client base and accelerate our growth.”
“A large near-term opportunity is to bring Norland’s services to CBRE’s client base in continental Europe,” added Ian Entwisle, ceo of Norland, who will continue in that role as ceo of CBRE Norland.
Norland reported revenue of £385m for year ending April 5. Revenue has grown at a double-digit rate every year over the last ten years.