When the deal completes, CBRE will own 70% of the combined Turner & Townsend/CBRE Project Management business, with the Turner & Townsend partners holding the remaining 30%.
The combined business will be led by Vincent Clancy, Turner & Townsend’s chairman and chief executive, who will continue to report to a board controlled by CBRE and comprised of senior executives from both CBRE and Turner & Townsend.
CBRE acquired 60% of Turner & Townsend in November 2021.
CBRE’s entire Project Management business, including Turner & Townsend, produced net revenue of approximately US $3bn in 2023. CBRE said that bringing the two businesses together would create cost savings and synergies.
CBRE chair and chief executive Bob Sulentic said: “Unifying our Project Management business will create an offering that is unmatched for its scale and breadth of capabilities, with more than 20,000 employees serving clients in over 60 countries. Powerful secular trends, particularly increased spending on infrastructure, green energy, and employee experience, are growth catalysts for this business and we are well positioned to capitalise on this significant opportunity.”
He added: “Vince is an exemplary leader who has guided Turner & Townsend to great success. Putting CBRE’s extensive global Project Management resources and capabilities under Vince will strengthen our value proposition for clients and advance our growth ambitions.”
Vincent Clancy said: “Our ambition since joining forces with CBRE in 2021 has been to create the premier, differentiated programme, project and cost management capability globally. We have made exceptional progress towards this goal and our revenue and profit have grown significantly in the last three years. Turner & Townsend’s momentum will continue to grow with the combining of two great businesses into one integrated, pure play project management capability. Our combined depth of talent and resources, global footprint, sector expertise and commitment to excellence will be second to none in project and programme management.”
The CBRE directors intends to appoint Mr Clancy to the CBRE board on closing the transaction, which is expected at around year-end. “Vince will bring a global perspective and deep experience in key growth areas like renewable energy and infrastructure to our board. We look forward to his insights and contributions,” Bob Sulentic said.
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