Brookfield Asset Management Inc.
(TSX:BAM.A)(NYSE:BAM)(EURONEXT:BAMA), and global diversified
technology and industrial leader Johnson Controls have agreed to
merge their Australian and New Zealand property and facility
services operations to create Brookfield Johnson Controls.
The merged entity will combine the local operations of
Brookfield Multiplex Services, which provides real estate,
facilities and project management services to a range of large
corporate and government occupiers, with the Australian and New
Zealand business of Johnson Controls Global WorkPlace Solutions
(GWS), a leading provider of facilities, corporate real estate and
energy management services.
Key highlights
-- Brookfield Johnson Controls will combine Johnson Controls GWS's global
operating model, industry expertise and technology expertise with
Brookfield Multiplex Services' regional infrastructure, local knowledge
and established real estate, facilities and project management
capabilities.
-- The merged entity will manage more than 3.9 million square metres of
property in more than 9,200 locations around Australia and New Zealand.
Its revenue will be approximately $250 million, with a goal to double
the size of the business over the next five years.
-- The company's client base includes major global corporations such as
Agilent Technologies, GlaxoSmithKline and Cisco, along with a number of
federal, state and local government agencies.
Jon McCormick, managing director, Brookfield Johnson Controls,
said: "This merger creates a new fully integrated real estate,
facilities and project management provider, one of only a handful
of companies in Australia and New Zealand able to offer such a
broad range of services.
"There is a clear opportunity to achieve accelerated growth in a
growing market. Internal research values the outsourced property
services market in Australia and New Zealand at A$18 billion, which
is expected to grow by approximately 5 per cent annually. Both
government agencies and corporates are increasingly looking to
outsource property management functions to get innovative and
professional services which can increase efficiency and deliver
bottom-line value. As a result, we see a real opportunity to draw
on the expertise of our two global parent companies to provide a
market-leading alternative."
Extension of successful global partnership
Brookfield Johnson Controls is the second partnership between
Brookfield and Johnson Controls globally. The first, which was
formed in Canada in 1992, is an established industry leader
providing services to more than 12.5 million square metres (134
million square feet) in 11,500 locations across Canada.
Concurrent with the formation of Brookfield Johnson Controls in
Australia, interests in the Canadian company will also be
realigned. The Canadian entity will be renamed Brookfield Johnson
Controls.
The companies' Canadian partnership has built a strong
reputation in the financial services sector, counting many of
Canada's largest banks and financial institutions as clients. This
expertise will be used by Brookfield Johnson Controls to serve
Australian and New Zealand financial services clients, among
others.
"We expect the combined regional strength of Brookfield
Multiplex Services, the Johnson Controls GWS international platform
and the global expertise of our parent companies will be
particularly compelling for banks, insurance companies and other
financial institutions in the region," said Mr McCormick.
"Our target sectors also include the life sciences, technology,
industrial and oil and gas markets while our global reach will
appeal to larger companies with operations in Australia and New
Zealand looking to grow into international markets."
Iain Campbell, vice president and general manager, Johnson
Controls Global Energy and WorkPlace Solutions, said: "This merger
represents an extension of the global Brookfield and Johnson
Controls partnership. Based on a relationship now spanning three
decades, and drawing together the highly-complementary skill sets
of our respective businesses, we are confident our new Australian
and New Zealand business will have an immediate impact in this
important market."
Brian Kingston, CEO of Brookfield Australia, said: "Brookfield
and Johnson Controls have enjoyed great success in Canada using a
similar model to the one that will be employed in Australia. The
formation of this partnership was the next logical step in
accelerating our growth in Australia and New Zealand, a market on
which we place great importance and view with ongoing
confidence."
The merger agreement between Brookfield Multiplex Services and
Johnson Controls GWS in Australia and New Zealand is subject to
customary conditions precedent and is expected to close before the
end of the calendar year. Brookfield Johnson Controls intends to
begin operations from early 2013.
About Johnson Controls Global WorkPlace Solutions
Johnson Controls Global WorkPlace Solutions is a leading
provider of facilities, corporate real estate and energy management
for many of the world's largest companies. We create business
advantage for our customers through tailored solutions that
optimize their real estate performance and employee productivity
while reducing total occupancy costs. Our 21,000 employees have
delivered over $3 billion in savings for our customers over the
last 10 years and ensure the business continuity of the 1.8 billion
square feet of real estate that we manage in more than 75
countries.
About Johnson Controls
Johnson Controls is a global diversified technology and
industrial leader serving customers in over 150 countries. Our
162,000 employees create quality products, services and solutions
to optimize energy and operational efficiencies of buildings;
lead-acid automotive batteries and advanced batteries for hybrid
and electric vehicles; and interior systems for automobiles. Our
commitment to sustainability dates back to our roots in 1885, with
the invention of the first electric room thermostat. Through our
growth strategies and by increasing market share we are committed
to delivering value to shareholders and making our customers
successful. In 2012, Corporate Responsibility Magazine recognized
Johnson Controls as the #5 company in its annual "100 Best
Corporate Citizens" list.
For additional information, please visit
http://www.johnsoncontrols.com.
About Brookfield Multiplex Services
Brookfield Multiplex Services provides real estate, facilities
and project management services to a range of large corporate and
government occupiers in Australia and New Zealand. With more than 3
million square meters and 8,900 properties under management,
Brookfield Multiplex Services has significant regional
infrastructure and service capabilities that will add to our client
service offering.
About Brookfield
Brookfield Asset Management Inc. is a global alternative asset
manager with over $150 billion in assets under management. The
company has over a 100-year history of owning and operating assets
with a focus on property, renewable power, infrastructure and
private equity. It has a range of public and private investment
products and services. Brookfield is co-listed on the New York and
Toronto Stock Exchanges under the symbols BAM and BAMA,
respectively, and on NYSE Euronext under the symbol BAMA.
For additional information, please visit www.brookfield.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND
INFORMATION
This press release contains "forward-looking information" within
the meaning of Canadian provincial securities laws and
"forward-looking statements" within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended, Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, "safe harbor"
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, include statements regarding the operations, business,
financial condition, expected financial results, performance,
prospects, opportunities, priorities, targets, goals, ongoing
objectives, strategies and outlook of Brookfield, Johnson Controls
and their subsidiaries, as well as the outlook for North American,
Australian, New Zealand and other economies for the current fiscal
year and subsequent periods, and include words such as "expects",
"increase," "grow," or negative versions thereof and other similar
expressions, or future or conditional verbs such as "may," "will,"
"should," "would" and "could".
Although we believe that our anticipated future results,
performance or achievements expressed or implied by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not
place undue reliance on forward-looking statements and information
because they involve known and unknown risks, uncertainties and
other factors, many of which are beyond our control, which may
cause the actual results, performance or achievements of Brookfield
and Johnson Controls to differ materially from anticipated future
results, performance or achievement expressed or implied by such
forward-looking statements and information.
Factors that could cause actual results to differ materially
from those contemplated or implied by forward-looking statements
include, but are not limited to: the impact or unanticipated impact
of general economic, political and market factors in the countries
in which we do business; the behavior of financial markets,
including fluctuations in interest and foreign exchanges rate;
global equity and capital markets and the availability of equity
and debt financing and refinancing within these markets; strategic
actions including dispositions; the ability to complete and
effectively integrate acquisitions into existing operations and the
ability to attain expected benefits; changes in accounting policies
and methods used to report financial condition (including
uncertainties associated with critical accounting assumptions and
estimates); the effect of applying future accounting changes;
business competition; operational and reputational risks;
technological change; changes in government regulation and
legislation within the countries in which we operate; changes in
tax laws, catastrophic events, such as earthquakes and hurricanes;
the possible impact of international conflicts and other
developments including terrorist acts; and other risks and factors
detailed from time to time in our documents filed with the
securities regulators in Canada and the United States.
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. When relying on our
forward-looking statements, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Except as required by law, Brookfield and Johnson
Controls undertake no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
that may be as a result of new information, future events or
otherwise.
Contacts: MAGNUS Investor Relations + Corporate Communication
Ian Pope +61 2 8999 1008 / +61 416 826 037ipope@magnus.net.au Garry
Nickson +61 2 8999 1004 / +61 414 930 082gnickson@magnus.net.au
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