Balfour Beatty, the U.K.-based construction company, continued its strategy of selling off non-core assets with its recent sale of Atlanta-based design services and project management firm Heery International to a subsidiary of the real estate and consulting giant CBRE Group.
The October 30 acquisition, for which CBRE agreed to pay an estimated $57 million (42 million British pounds) in cash, was completed today.
Heery was founded in 1952. Balfour Beatty bought a 50% stake in Heery in 1986, and increased its holding to 100% four years later. However, that ownership sometimes precluded Balfour from acting as a project manager and bidding as a GC simultaneously on certain projects in the U.S. Heery’s sale to CBRE removes any conflict of interest from Balfour’s U.S. Buildings operations, and allows it to partner with Heery on future projects.
In 2016, the latest year for which results are available, Heery International had gross assets valued at the equivalent of $106.1 million, and generated pretax profit the equivalent of $3.2 million. It currently operates from 19 U.S. offices with 535 employees. Its services include project management, architecture, engineering, interior design, and commissioning.
CBRE maintains the largest network of professional commercial real estate project managers worldwide. Its more than 5,000 specialists, including 350-plus LEED-certified professionals, oversaw projects with a total contract value of more than $42 billion worldwide in 2016.
In a joint venture with H.J. Russell, Heery provided construction management services for Phase I of the Atlanta-Fulton Public Library System's capital improvement program, which entailed eight new libraries (155,000 sf) and two expanded libraries (81,000 sf). Image: Heery International
Mike Lafitte, CBRE’s Global Group President-Lines of Business, states that this acquisition should advance his company’s strategy to expand its project management expertise. “Heery has a strong track record of client service with many longstanding relationships spanning decades,“ he says. Lafitte points specifically to Heery’s relationships in the public and educational sectors. This acquisition will also extend CBRE’s reach into such vertical segments as aviation and sports, and add capabilities and expertise in design engineering services.
Ted Sak and Glenn Jardine, Heery’s President/CEO and Executive VP/COO, respectively, will continue to lead Heery under CBRE’s umbrella.
Related Stories
| Mar 7, 2012
LEO A DALY selected to design Minnesota Fallen Firefighters Memorial
The bronze, figurative sculpture of a firefighter rescuing a child, which is currently on display at the Minneapolis/St. Paul International Airport, is lit by natural light through a circular void in the monolith.
| Mar 7, 2012
Houlihan Lokey adds Steffen to Industrials Group
Steffen bolsters group with experience in the building materials and rorest product sectors.
| Mar 6, 2012
Country’s first Green House home for veterans completed
Residences at VA Danville to provide community-centered housing for military veterans.
| Mar 6, 2012
EwingCole completes first design-build project for the USMA
The second phase of the project, which includes the academic buildings and the lacrosse and football fields, was completed in January 2012.
| Mar 6, 2012
Gensler and Skender complete new corporate headquarters for JMC Steel in Chicago
Construction was completed by Skender in just 12 weeks.
| Mar 6, 2012
BLT Architects promotes two to associate
Architect Nicole Dress and interior designer Jessica Moser acknowledged for excellence.
| Mar 6, 2012
Joliet Junior College achieves LEED Gold
With construction managed by Gilbane Building Company, Joliet Junior College’s Facility Services Building combines high-performance technologies with sustainable materials to meet aggressive energy efficiency goals.
| Mar 5, 2012
Tishman constructing new courthouse in Philadelphia
Construction is underway for the Pennsylvania Department of General Services’ 510,000-sf facility.
| Mar 5, 2012
Perkins Eastman pegs O’Donnell to lead K-12 practice
O’Donnell will continue the leadership and tradition of creative design established by firm Chairman and CEO Bradford Perkins FAIA, MRAIC, AICP in leading this market sector across the firm’s 13 offices domestically and internationally.
| Mar 5, 2012
Moody+Nolan designs sustainable fire station in Cincinnati
Cincinnati fire station achieves LEED Gold certification.