MILWAUKEE, Sept. 1, 2015 /PRNewswire/ — Johnson Controls (NYSE: JCI) announced today it has completed the sale of its Global Workplace Solutions (GWS) business to CBRE Group (NYSE: CBG) for $1.475 billion. Global Workplace Solutions is one of the world’s largest providers of facilities management services.
The sale includes a 10-year strategic relationship between the two companies. Johnson Controls will be the preferred provider of HVAC equipment, building automation systems and related services to the 5 billion sq. ft. portfolio of real estate and corporate facilities managed globally by CBRE and GWS. The agreement provides Johnson Controls with new channels for its offerings and when fully operational is expected to generate up to $500 million of annual incremental revenue for the Johnson Controls Building Efficiency business.
“The sale of Global Workplace Solutions goes beyond its transactional value, as it represents an investment by Johnson Controls to grow its core building business, at the same time forging a strategic partnership with CBRE that will deliver long-term benefits to both companies,” said Alex Molinaroli, Johnson Controls CEO.