Glendale-based Johnson Controls Inc. may be in talks to sell its Global Workplace Solutions arm to major global commercial real estate services firm CBRE Group Inc. for more than $1 billion.
According to a Reuters report that cites unnamed people “familiar with the matter,” CBRE won out against several private equity firms in an auction, and is now negotiating the acquisition of the segment, which offers facilities and energy management for more than 1.8 billion square feet of corporate real estate.
Johnson Controls last year announced it would be divesting Workplace Solutions because it doesn’t fit in with the company’s core operations.
Representatives at both companies called the report speculative.
“There’s really nothing I can say at this point,” said Fraser Engerman, spokesperson for Johnson Controls. “We’re still in the process of divesting the business, and we have no comment at this time.”
“There was a news report to that effect, but there’s been nothing put out by us,” said Robert McGrath, spokesperson for CBRE. “We don’t comment on market rumors and speculation.”
In other Johnson Controls news, work reportedly began on Al Salem Johnson Controls’ new manufacturing facility and training center at King Abdullah Economic City in Rabigh, Saudi Arabia. ASJC is a joint venture between the Al Salem Group of Companies and Johnson Controls. The building is expected to be fully operational in 2017 and create 2,000 jobs.
