CBRE Group Inc. has announced a definitive agreement to acquire J&J Worldwide Services—a provider of engineering services, base support operations, and facilities maintenance for the U.S. federal government—from private equity firm Arlington Capital Partners.
CBRE, one of the world’s largest commercial real estate services and investment firms, said the deal will expand the Dallas-based company’s public-sector capabilities. The initial purchase price is $800 million in cash, plus a potential earn-out of up to $250 million, payable in 2027, subject to J&J meeting certain performance thresholds.
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 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, chair and CEO of CBRE.
J&J serves as a trusted partner to U.S. federal civilian and defense agencies, delivering mission-critical services across three business lines:
- Healthcare and Medical Solutions, serving such institutions as Brooke Army Medical Center and Walter Reed National Military Medical Center;
- Mission Support Solutions, serving the United States Naval Academy and such military bases as the U.S. Naval Station, Rota, Spain; and
- Engineering Solutions, which provides services ranging from architectural, mechanical, electrical, plumbing, and fire protection for Naval Medical Center Portsmouth, the Naval Support Facility Diego Garcia, and others.
Steve Kelley, CEO of J&J Worldwide Services, said, “Becoming part of CBRE provides J&J a great opportunity to continue building upon and expanding the solutions we provide our military customers at mission-critical facilities around the world.”
Subject to regulatory and other customary approvals, the acquisition is expected to close in the coming months.