Dallas-based real-estate services and investment company CBRE Group has announced its agreement to acquire J&J Worldwide Services, a leading provider of maintenance services to the U.S. government. The deal, valued at up to $1.05 billion in cash, will see CBRE pay an initial amount of $800 million for the acquisition. J&J is known for its expertise in engineering services, base support operations, and facilities maintenance catering to government entities.
The transaction is expected to be finalized in the coming months and includes a potential earn-out of up to $250 million, which will be payable in 2027, contingent upon J&J meeting specific performance milestones. CBRE estimates that J&J will achieve revenue of over $525 million and an EBITDA of $65 million in the current year. Impressively, CBRE posted a robust revenue of nearly $23 billion during the first nine months of 2023.
J&J Worldwide Services was acquired by Arlington Capital Partners, a private-equity firm based in Washington D.C., in 2020. This upcoming acquisition by CBRE Group underscores its strategic growth initiatives and commitment to expanding its presence in the government maintenance services sector.