NEW YORK (TheStreet) -- CBRE Group (CBG) shares are up 4.6% to $38.08 in early market trading on Tuesday after the real estate services and investment firm agreed to purchase climate control company Johnson Controls (JCI) - Get Report global workplace solutions business for $1.48 billion in cash.

"With GWS, we further our ability to create advantages for occupier clients by aligning every aspect of how they lease, own, use and operate real estate to enhance their competitive position," said CBRE CEO Bob Sulentic.

The unit, which provides on-site staff for managing and maintaining commercial buildings generated $4 billion in revenue during the previous fiscal year, a 4% drop from the previous year, while income of $95 million was down 16% from the year ago period. 

The deal is expected to be completed in either the third or fourth quarter this year with the deal expected to positively impact adjusted earnings in 2016.

TheStreet Ratings team rates CBRE GROUP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CBRE GROUP INC (CBG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 24.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
• CBRE GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CBRE GROUP INC increased its bottom line by earning $1.45 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.45).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 78.2% when compared to the same quarter one year prior, rising from $114.65 million to $204.28 million.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Management & Development industry and the overall market, CBRE GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
• Net operating cash flow has increased to $593.30 million or 16.22% when compared to the same quarter last year. In addition, CBRE GROUP INC has also vastly surpassed the industry average cash flow growth rate of -51.22%.
• You can view the full analysis from the report here: CBG Ratings Report

Must Read:

Warren Buffett's Top 25 Stocks for 2015