Dallas-based real estate services and investment giant CBRE Group has agreed to acquire J&J Worldwide Services—a leading provider of engineering services, base support operations, and facilities maintenance for the U.S. federal government—from Arlington Capital Partners, a Washington, D.C.-area private investment firm specializing in government-regulated industries.
CBRE said the initial purchase price is $800 million in cash, plus a potential earn-out of up to $250 million, payable in 2027, and subject to J&J meeting certain performance thresholds.
“The acquisition is consistent with key elements of our M&A strategy that focus on enhancing our technical services capabilities, increasing revenue resilience and secular growth, and expanding our government client base within Global Workplace Solutions,” CBRE Chair and CEO Bob Sulentic said in a statement. “We’re adding a company with deep government contracting experience, long-term customer relationships, and a 50-year record of outstanding technical service delivery.”
CBRE said that this year, J&J is projected to produce more than $525 million of revenue and roughly $65 million of EBITDA1, continuing its recent track record of “low double-digit annual growth.”
Focusing on military bases and military hospitals
J&J primarily serves the Department of Defense through long-term, fixed-price contracts, It employs more than 3,300 people worldwide, serving more than 250 hospitals, clinics and military installations primarily in the U.S. as well as in Europe, Asia, the Caribbean, and the Middle East.
CBRE said that J&J is a trusted partner to U.S. federal civilian and defense agencies delivering mission-critical services across three business lines:
- Healthcare and Medical Solutions, serving such institutions as Brooke Army Medical Center and Walter Reed National Military Medical Center
- Mission Support Solutions, serving the United States Naval Academy and such military bases as the U.S. Naval Station, Rota, Spain
- Engineering Solutions, which provides services ranging from architectural, mechanical, electrical, plumbing, and fire protection for Naval Medical Center Portsmouth and the Naval Support Facility Diego Garcia and others.
“Becoming part of CBRE provides J&J a great opportunity to continue building upon and expanding the solutions we provide our military customers at mission-critical facilities around the world,” Steve Kelley, CEO of J&J Worldwide Services, said in a statement.
“Arlington Capital Partners provided the industry expertise and guidance needed to scale our solutions at an unrivaled pace and prepare us for continued growth,” Kelley added. “We’re excited about combining our capabilities and track record with CBRE’s to enhance our commitment to serving those that serve our nation.”
Closing is expected in the coming months, CBRE said.
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