CBRE Group Inc. (CBG - Free Report) disclosed the acquisition of Richmond, Va.-based KLMK Group – a leading healthcare consulting & project advisory firm. The strategic move is aimed at enhancing its healthcare platform and thereby serving the escalating demand generated by healthcare systems in the U.S.
KLMK Group offers project advisory, facility consulting and facility activation solutions to the U.S. healthcare industry. The acquired company will now be incorporated into CBRE Group’s Healthcare platform under the guidance of Jim Hayden – CBRE Healthcare’s Executive Managing Director.
Also, CBRE Group declared the appointment of John Kemper as Senior Managing Director of CBRE Healthcare to assist Jim Hayden in the amalgamation process. Notably, the CBRE Healthcare of CBRE Group offers widespread facility solutions to over 60 major hospitals and healthcare systems and above 4,500 physician practices across North America.
The healthcare industry fundamentals are on the rise with healthcare spending expected to be 20% of the U.S. GDP. This prompted healthcare systems to improve their facility management and capital spending programs. Consequently, healthcare systems are capitalizing on the prospects of monetizing assets, reducing expenses and enhancing overall patient experience.
This positive scenario justifies the acquisition of KLMK by CBRE Group, which has been making concerted efforts to meet this rising demand. Notably, this strategic buyout will further strengthen CBRE Group’s healthcare platform with the addition of KLMK professionals to its highly efficient team of 650 healthcare experts.
Last week, CBRE Group reported its third-quarter 2013 results with adjusted earnings of 30 cents per share missing the Zacks Consensus Estimate by 3 cents. However, it was 15% higher than 26 cents earned in the prior-year quarter. Though the company experienced a rise in revenues, higher expenses were a dampener.
Hence, this commercial real estate investment trust (REIT) currently carries a Zacks Rank #4 (Sell). Better performing REITs include Jones Lang LaSalle Incorporated (JLL - Free Report) , General Growth Properties, Inc (GGP - Free Report) and Healthcare Trust of America, Inc. (HTA - Free Report) . All the above stocks hold a Zacks Rank #2 (Buy).