Glendale-based Johnson Controls Inc. has completed the sale of its Global Workplace Solutions segment to CBRE Group.
Johnson Controls is a global diversified technology and industrial company with 170,000 employees in more than 150 countries. Its GWS segment provided integrated facilities and corporate real estate management. CBRE Group is a commercial real estate company based in Los Angeles.
The $1.475 billion transaction, which the companies announced in March, includes a provision that they will remain strategic partners for 10 years. Johnson Controls will provide HVAC equipment, building automation systems and related services for CBRE’s real estate portfolio, which now totals 5 billion square feet. The partnership will provide about $500 million in annual incremental revenue to the Johnson Controls Building Efficiency business.
And CBRE will provide integrated corporate real estate services, including facilities management, project management and transaction services, for Johnson Controls’ 50 million square feet of property.
Johnson Controls is also in the process of spinning off its Automotive Experience division as it reorganizes the company to focus on its core offerings.
