FacilitySource, a portfolio company of Warburg Pincus since February 2012, has been sold to CBRE Group for approximately $290 million in cash.
FacilitySource is a provider of facility management services to companies operating in the retail, banking, logistics, healthcare and other industries. The company supports more than 120,000 customer locations nationwide for facilities management services, capital-improvement and energy-management projects, with a particular emphasis on large multi-site portfolios. FacilitySource manages more than $3 billion of annual facility maintenance spend, across more than 4 million work orders. The company, led by CEO Bill Hayden, was founded in 2005 and has a back-office support center in Phoenix, AZ and an operations center in Columbus, OH (www.facilitysource.com).
“Since investing in FacilitySource in 2012, we have been pleased to partner with Bill Hayden and his team as the company has competed successfully, grown significantly and become the innovation leader in integrated facility management services,” said Alex Berzofsky, a Managing Director at Warburg Pincus. “FacilitySource meets a critical need for large facility portfolios, and we wish them continued success in this next chapter of the business.”
CBRE Group (NYSE:CBRE) is one of the largest commercial real estate services and investment firms. The company has more than 80,000 employees and approximately 450 offices worldwide. CBRE services include facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; consulting; property sales; mortgage services and development services. CBRE is headquartered in Los Angeles (www.cbre.com).
“FacilitySource materially advances our strategy of creating superior client outcomes through the delivery of integrated solutions – from facilities management to project management to transactions – for leading occupiers,” said Bill Concannon, CBRE’s Global Group President and CEO, Global Workplace Solutions. “We are constantly evolving and extending our service offerings with innovative solutions. In FacilitySource, we have found a company that brings complementary technologies, a rich source of data, and a strong leadership team with a record of growth and deep client commitment.”
CBRE traces its roots back more than 100 years when after the 1906 San Francisco earthquake, Tucker, Lynch & Coldwell was established. In 1940 the company was renamed Coldwell Banker and in 1981, Coldwell Banker was acquired by Sears. The Carlyle Group acquired the business in 1989 from Sears for $305 million and renamed it CB Commercial. Carlyle took the company public in 1996 and in 1998 it merged with Richard Ellis International and changed its name to CB Richard Ellis. In 2001, the company was taken private by an investment group led by Blum Capital in an $800 million transaction, and in 2004 was once again taken public. In 2011, the company changed its name to CBRE Group.
“We built FacilitySource to unlock the power of data and change the facilities management industry. Combining with CBRE enhances our ability to grow quickly, serve large, complex client portfolios, and invest in our leading model,” said Mr. Hayden. “Together, we can accomplish much more than either company could on its own.”
Warburg Pincus has more than $44 billion in assets under management and has raised 16 private equity funds since its founding in 1966. In November 2015, the firm reached a final close of Warburg Pincus Private Equity XII LP at the hard cap of $12 billion. Warburg Pincus is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore (www.warburgpincus.com).
© 2018 Private Equity Professional | June 13, 2018
