CBRE Grows Energy Management Business
- Apr 15, 2015
Two weeks after announcing it was buying the Global WorkPlace Solutions business of Johnson Controls, CBRE Group, Inc. is adding to its facilities and energy management services offerings with the acquisition of Environmental Systems, Inc.
Financial terms of the deal were not disclosed.
ESI, which provides services to more than 180 million square feet of facilities at more than 2,800 sites in the United States, develops solutions for commercial property occupiers and owners to efficiently manage building systems and remotely monitor and analyze energy usage.
“ESI complements our existing suite of facilities-related outsourcing services. Our clients increasingly look to us to leverage new and existing controls – and the data that can be extracted from systems – and remote monitoring to drive greater energy efficiency,” Bill Concannon, CEO, Global Corporate Services, CBRE, said in a news release. “This is a core strategy and growing capability for CBRE. ESI’s professionals will enhance our expertise and service offering in energy and sustainability management.”
The acquisition of Brookfield, Wisc.-based ESI comes two weeks after CBRE’s announcement of a definitive agreement to acquire the GWS business of Johnson Controls, for $1.48 billion in cash. That deal is expected to close in the late third quarter or early fourth quarter. GWS is the market leader in facilities management solutions. Together, GWS and CBRE will manage nearly 5 billion square feet of real estate and corporate facilities globally, including 2.3 billion square feet in the Americas, 1.2 billion square feet in Europe, the Middle East and Africa and 1.4 billion square feet in Asia Pacific.
CBRE said the two acquisitions underscore the international commercial real estate services firm’s commitment to provide global, industry-leading facilities management solutions, including energy and sustainability products and services, to its clients.
ESI serves a wide range of facilities including office, retail, industrial, critical environments, healthcare and education. The Milwaukee Journal Sentinel reported that ESI’s clients include Kohl’s, Roundy’s and Quad/Graphics and the federal government. The newspaper said ESI won a U.S. Government Services Association contract two years ago to manage energy use at 50 large government properties.
The company, founded in 1986, has approximately 65 employees. Paul Oswald, ESI president, will join CBRE as a managing director and will continue to directly manage the unit, a CBRE spokesperson told Commercial Property Executive.
“We value long-term relationships with our customers and work closely with them to reduce costs, improve efficiency and maximize their facility investment,” Oswald said in a prepared statement. “Joining CBRE’s high-quality, integrated Energy & Sustainability service offering will further or goal of providing superior solutions that meet the ever-evolving needs of our clients.”