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.