CBRE Group Inc. (NYSE:CBRE) is paying $800 million in cash to acquire J&J Worldwide Services, a provider of engineering services, base support operations and facilities maintenance for the U.S. federal government, from Arlington Capital Partners, a Washington, D.C.-area private investment firm specializing in government regulated industries.
J&J primarily serves the U.S. Department of Defense through long-term, fixed-price contracts. The company employs more than 3,300 people worldwide, serving more than 250 hospitals, clinics and military installations primarily in the United States as well as in Europe, Asia, the Caribbean, and the Middle East.
The acquisition deal includes a potential earn-out of up to $250 million, payable in 2027, subject to the acquired business meeting certain performance thresholds – J&J is projected to produce more than $525 million of revenue and approximately $65 million of EBITDA this year.
“The acquisition is consistent with key elements of our M&A strategy that focus on enhancing our technical services capabilities, increasing revenue resilience and secular growth and expanding our government client base within Global Workplace Solutions,” said Bob Sulentic, chairman and CEO of CBRE. “We are adding a company with deep government contracting experience, long-term customer relationships and a 50-year record of outstanding technical service delivery.”