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CBRE to buy Heery
Posted on Friday, 06 October 2017 10:40
Construction firm Balfour Beatty is selling its unit Heery International to CBRE for about USD 57.00 million.
The purchase price is six times the target’s projected earnings before interest, tax, depreciation and amortisation in 2017.
Completion is expected to occur in the fourth quarter of 2017, subject to customary closing conditions.
Established in 1952, Heery specialises in architecture, interior design, engineering and construction project management services.
It is based in Georgia, the US and employs about 535 people in 19 offices in its home country.
Construction programme managers are barred from bidding as general contractors in certain US markets due to concerns over conflicts of interest.
Through the sale, Balfour Beatty wants to remove this constraint, which will then allow it to partner with Heery on potential projects in the future.
Listed on the New York Stock Exchange, CBRE provides property agency, management, operation and investment services.
It posted revenue of USD 6.32 billion in the six months ended 30th June 2017, up 4.4 per cent on the USD 6.05 billion recorded during the same timeframe in the previous year.
Net income for the period totalled USD 329.90 million, compared to USD 208.09 million.
The announcement comes barely a month after the buyer agreed to team up with AXA Real Estate Investment Managers and Greystar Real Estate Partners to buy Spanish student residency operator Residencias de Estudiantes for over EUR 400.00 million.
According to Zephyr, the M&A database published by Bureau van Dijk, globally, there have been 93 announced deals targeting architecture firms since the beginning of this year.
The largest of these was Centerbridge Partners’ USD 1.35 billion acquisition of TriMark USA, which completed last month.
© Zephus Ltd