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 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.
“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.”
Pearce provides design engineering, maintenance, and repair services for critical infrastructure spanning power, telecom, renewable energy, and data centers.
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.
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.
Source: Reuters.com