Christine Thropp
J&J Worldwide Services and CBRE Group have inked a definitive agreement for the latter’s acquisition of the Arlington Capital Partners portfolio company for $800 million in cash.
In addition to the initial purchase price, the deal has a potential earn-out of up to $250 million, payable in 2027 and subject to J&J meeting certain performance thresholds, the Austin, Texas-based mission support services provider said Monday.
J&J CEO Steve Kelley sees CBRE’s acquisition of the company “a great opportunity” to further advance and expand offerings in support of military customers at hospitals, installations and other facilities worldwide.
“Arlington Capital Partners provided the industry expertise and guidance needed to scale our solutions at an unrivaled pace and prepare us for continued growth,” he added. “We are excited about combining our capabilities and track record with CBRE’s to enhance our commitment to serving those that serve our nation.”
J&J is expected to continue its low double-digit annual growth trend in 2024 with over $525 million revenue and approximately $65 million EBITDA. The company provides services through its three business lines: Healthcare and Medical Solutions, Mission Support Solutions and Engineering Solutions. It supports locations in the United States, Europe, Asia, the Caribbean and the Middle East, employing more than 3,300 people worldwide.
“J&J is well-positioned to continue benefitting from strong secular tailwinds, including modernization of U.S. Department of Defense infrastructure, and increasingly as it relates to addressing our near-peer competitors,” commented Sean Thompson, chief growth officer of J&J. “Joining CBRE will allow us to build on our record of double-digit annual growth, while positioning J&J to expand our global capabilities to better serve our customers.”
On the other hand, Bob Sulentic, chair and CEO of CBRE, underscored J&J’s history of government contracting and technical service delivery as well as its long-term customer relationships.
The acquisition is subject to obtaining applicable regulatory clearances and other customary closing conditions.
