Summary
CBRE Group, Inc. (CBRE) filed an 8-K on November 13, 2013, to report a material definitive agreement for the acquisition of Norland Holdings Ltd. The transaction, valued at approximately £250 million (around $400 million) plus potential deferred contingent consideration and working capital adjustments, is expected to close before the end of 2013. The acquisition will be paid for in cash, with a small portion (£5.6 million or $9 million) paid in CBRE Class A Common Stock to Norland's senior management.
Key Highlights
- 1CBRE Group, Inc. is acquiring Norland Holdings Ltd.
- 2The total purchase price is approximately £250 million (USD $400 million) in cash, plus deferred contingent consideration and working capital adjustments.
- 3A portion of the payment, approximately £5.6 million (USD $9 million), will be made in CBRE Class A Common Stock to Norland senior management.
- 4The acquisition is subject to clearance from the European Commission.
- 5The closing of the transaction is anticipated to occur before the end of 2013.
- 6The agreement was entered into on November 12, 2013.
Frequently Asked Questions
This 8-K filing announces CBRE Group, Inc.'s entry into a material definitive agreement to acquire Norland Holdings Ltd., providing details on the transaction's terms, purchase price, and expected closing timeline.
The total expected cost is approximately £250 million (USD $400 million) in cash, plus up to £50 million (USD $80 million) in deferred contingent consideration and a payment for excess working capital and related items.
Yes, the primary condition mentioned is the receipt of clearance from the European Commission. The Share Sale Agreement also includes provisions for termination if sellers are in material breach of their obligations.
The acquisition will be financed primarily with cash. A small portion, valued at £5.6 million (approximately $9 million), will be paid in CBRE Class A Common Stock to Norland senior management.