Johnson Controls finalizes sale of business to CBRE Group

Freeman Staff

Sept. 1, 2015

MILWAUKEE — Johnson Controls announced Tuesday that it has completed the sale of its Global Workplace Solutions business to CBRE Group for $1.475 billion.

Global Workplace Solutions is one of the world’s largest providers of facilities management services. According to the announcement, the sale includes a 10-year strategic relationship between the two companies with Johnson Controls being 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.

When the agreement is fully implemented, it’s expected to create up to $500 million of annual incremental revenue for the Johnson Controls Building Efficiency business, according to the company.

“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,” said Alex Molinaroli, Johnson Controls CEO, in a statement.

Both Johnson Controls and CBRE will provide $40 million combined during 10 years to fund a building innovation lab to create leading-edge energy management solutions to lower costs and enhance their clients’ work environments.