CBRE Group Inc. Acquires Pearce Services for $1.2 Billion
Real estate services firm CBRE Group Inc. said on Tuesday it has acquired infrastructure maintenance firm Pearce Services from New Mountain Capital for about $1.2 billion in cash, with a potential earn-out of up to $115 million.
The Deal and Its Impact
The deal boosts CBRE’s technical services portfolio as infrastructure demand rises across telecom, energy and electric vehicle charging spaces.
Pearce will become part of CBRE’s Building Operations & Experience unit and is expected to immediately boost CBRE’s core earnings.
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Statement from CBRE CEO
“This acquisition complements our large and growing presence in digital and power infrastructure,” said Bob Sulentic, CBRE’s chief executive officer. “It also opens sizable new growth avenues for CBRE in markets where the need for Pearce’s services is growing rapidly.”
About Pearce Services
Pearce provides design engineering, maintenance and repair services for critical infrastructure spanning power, telecom, renewable energy and data centers.
Expected Outcomes
CBRE expects the Pearce deal to help generate over $350 million in core EBITDA from its digital and power infrastructure services by 2026, excluding gains from potential data center land sales.
Advisers and Counsel
J.P. Morgan and Wells Fargo are acting as financial advisers to CBRE, with Sullivan & Cromwell as legal counsel. Ropes & Gray is advising Pearce and New Mountain Capital.
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Conclusion
In conclusion, the acquisition of Pearce Services by CBRE Group Inc. is a significant deal that is expected to boost CBRE’s technical services portfolio and generate substantial revenue in the coming years. The deal is a strategic move by CBRE to expand its presence in the digital and power infrastructure space and capitalize on the growing demand for infrastructure services.
Frequently Asked Questions
Q: What is the value of the deal?
A: The deal is valued at approximately $1.2 billion in cash, with a potential earn-out of up to $115 million.
Q: What services does Pearce provide?
A: Pearce provides design engineering, maintenance and repair services for critical infrastructure spanning power, telecom, renewable energy and data centers.
Q: What are the expected outcomes of the deal?
A: CBRE expects the Pearce deal to help generate over $350 million in core EBITDA from its digital and power infrastructure services by 2026, excluding gains from potential data center land sales.
Q: Who are the advisers and counsel for the deal?
A: J.P. Morgan and Wells Fargo are acting as financial advisers to CBRE, with Sullivan & Cromwell as legal counsel. Ropes & Gray is advising Pearce and New Mountain Capital.
