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CBRE Group (CBG) Inks Deal to Acquire Heery International


CBRE Group Inc. CBG recently entered into a definitive agreement to acquire Heery International, Inc. for roughly $57 million. The move comes as part of the company’s effort to expand its project-management expertise and capabilities.

Notably, Heery International is the project management and design engineering business of the international infrastructure group, Balfour Beatty LLC. This Atlanta-based company was founded in 1952. Its services include project management, architecture, engineering, interior design and commissioning. Heery has 19 offices in the United States and its client list includes names from corporate, government, healthcare, sports, aviation and education sectors.

Expected to close during the fourth quarter, the acquisition of Heery is likely to improve CBRE’s competence in the local market as well as account-based project management services.

Even after acquisition, Heery’s president Theodore Sak and COO Glenn Jardine will continue to lead Heery. Moreover, the company’s experts will work in collaboration with CBRE’s project management teams engaged in delivering services in local markets throughout the United States. Heery’s employees will also join hands with professionals engaged in execution of account-based project management programs through its corporate outsourcing business line, Global Workplace Solutions.

As a matter of fact, strategic in-fill acquisitions have played a vital role in widening CBRE’s geographic coverage, as well as expanding and reinforcing its service offerings. Furthermore, the company opts for larger, transformational deals, driven by macro policies. In fact, it has completed over 110 acquisitions since 2003, including five large, diligent acquisitions.

As market conditions continue to improve, we believe these opportunistic acquisitions and strategic investments will likely serve as growth drivers, fueling the company’s organic growth.

CBRE currently carries a Zacks Rank #2 (Buy). The stock has risen 23.3% year to date compared with 15% growth recorded by its industry.

Other Stock to Consider

Investors interested in the real estate operations industry can consider stocks like Jones Lang LaSalle Incorporated JLL, The RMR Group Inc. RMR and Realogy Holdings Corp. RLGY. While RMR Group sports a Zacks Rank #1 (Strong Buy), JLL and Realogy Holdings carry the same Zacks Rank as CBRE. You can see the complete list of today’s Zacks #1 Rank stocks here.

RMR Group Inc.’s Zacks Consensus Estimate for fiscal 2017 remained unchanged at $2.72, in seven days’ time.

The Zacks Consensus Estimate for JLL’s 2017 earnings inched up 0.4% to $8.01, over the past 30 days.

In addition, the Zacks Consensus Estimate for Realogy Holdings Corp. for 2017 earnings climbed 1.8% to $1.72, in the last 60 days.

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