CBRE Completes Merger with Turner & Townsend

By Bobby Samwell • Saturday, January 04 06:01 • Permanent Link

CBRE Group, Inc. (NYSE:CBRE) has completed its plan to combine its project management business with Turner & Townsend, its majority-owned subsidiary. This move has resulted in Vincent Clancy, the board chair and chief executive officer of Turner & Townsend, joining CBRE's board of directors. Under Clancy's leadership, Turner & Townsend's revenue has grown from about $225 million in 2008 to over $1.9 billion in 2023.

CBRE now owns 70% of the combined Turner & Townsend/CBRE project management business, and since becoming a majority-owned subsidiary of CBRE in November 2021, Turner & Townsend's revenue has increased at a compound annual rate of more than 20%.

Beginning this year, CBRE will report project management results in its own standalone business segment, providing increased transparency for investors.

This combination creates a unified project management business with unmatched scale and breadth of capabilities, poised to benefit from powerful secular trends in areas like infrastructure, green energy transition, and employee experience according to Bob Sulentic, CBRE's chair and chief executive officer.

Clancy, a 35-year veteran of Turner & Townsend, stated, "The strong momentum we’ve built over the past three years will continue to grow now that we’ve combined two great businesses into one integrated, pure play project management capability. Our combined depth of talent and resources, global footprint, sector expertise, and commitment to excellence is unparalleled in program and project management."

Clancy joined Turner & Townsend in 1989 and has been its CEO since 2008. He has been recognized for his leadership, having been named Building Magazine’s CEO of the Year in both 2014 and 2017.

It's also worth noting that CBRE Group, Inc. is a Fortune 500 and S&P 500 company and the world’s largest commercial real estate services and investment firm based on 2023 revenue. The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in over 100 countries. Turner & Townsend, on the other hand, is a global professional services company with over 20,000 people in over 60 countries.

The market has reacted to these announcements by moving the company's shares 1.2% to a price of $131.5. For more information, read the company's full 8-K submission here.

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