CBRE Group Inc. CBG announced the buyout of Environmental Systems, Inc. (ESI) in keeping with its acquisition strategy. The takeover came after the real estate services firm disclosed the buyout deal of the Global Workplace Solutions (GWS) business of Johnson Controls, Inc. JCI in late March. The financial terms of the ESI purchase have not been disclosed.
ESI is a systems integrator and provider of energy management services in the U.S. This Brookfield, WI-based company offers solutions for commercial property occupiers and owners for managing their building systems efficiently.
Analytics-driven managed services are offered by ESI for more than 180 million sq. ft. facilities at over 2,800 sites throughout the U.S. The company serves several facility categories including office, retail, industrial, critical environments, health care and education.
The ESI acquisition is a strategic fit and should boost CBRE’s facilities and energy management services platform. In fact, acquisitions have played a vital role in enhancing the company’s geographic coverage as well as broadening and strengthening its service offerings.
The $1.475 billion GWS acquisition too would help CBRE offer a full range of integrated real estate and facilities solutions worldwide. That deal is expected to close in late third-quarter or early fourth-quarter 2015. The company, with employee strength of approximately 16,000, commands significant presence globally and reaped around $3.4 billion revenues in 2014.
As such, we expect the above mentioned acquisitions to accelerate the Zacks Rank #2 (Buy) company’s growth momentum.
Investors interested in the real estate operations industry may also consider stocks like Landmark Infrastructure Partners LP LMRK and Reis, Inc. REIS. Both the stocks have the same Zacks Rank as CBRE.
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