SYDNEY - Brookfield Asset Management Inc. (TSX:BAM.A) and tech and auto parts maker Johnson Controls have announced a merger of their property and facility service operations in Australia and New Zealand.
The merged entity, which will be called Brookfield Johnson Controls, is expected to generate revenue of about $250 million and aims to double the size of its business over the next five years.
Toronto-based Brookfield said the merged company will combine its local operations of Brookfield Multiplex Services — which provides real estate, facilities and project management services — with the Australian and New Zealand business of Johnson Controls Global WorkPlace Solutions.
Brookfield says the combined company will manage more than 3.9 million square metres of property in more than 9,200 locations in Australia and New Zealand.
"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," Jon McCormick, managing director, Brookfield Johnson Controls, said in a statement.
"There is a clear opportunity to achieve accelerated growth in a growing market."
The deal is expected to close before the end of the year and Brookfield Johnson Controls expects to begin operations in early 2013.
This is the second time Brookfiled has teamed up with Johnson Controls. The two companies partnered in Canada in 1992 to provide services in 11,500 locations across the country.
Brookfield said the combined Canadian entity will now also be renamed Brookfield Johnson Controls and will have its interests realigned.
Brookfield has more than $150 billion of assets under management. It invests primarily in property, renewable power, infrastructure and private equity.