By Stuart Condie
SYDNEY–Australian building-services provider Johns Lyng Group agreed to pay up to 79 million Australian dollars (US$52.9 million) for a pair of acquisitions it said moves it closer to becoming a full turnkey solution for property owners and managers.
The company on Wednesday said it would pay A$61.8 million cash up front and up to A$17.25 million in earnouts to acquire 100% of Project Safety Holdings and 70% of Link Fire Holdings. Both companies operate across fire, electrical and gas compliance testing and are privately held.
The ASX-listed company intends to fund the transactions by raising A$65 million via a fully underwritten institutional share placement, and up to A$5 million via a share purchase plan.
Chief Executive Scott Didier said the acquisitions would help Johns Lyng build a fifth strategic business pillar in essential home services.
Both companies operate annuity style business models underpinned by subscription-based revenue with strong margins, Johns Lyng said and are expected to generate revenue of A$44.2 million and Ebitda of A$9.3 million in FY 2023 ended June 30.
The acquisitions are expected to close in 1Q of FY 2024.
Write to Stuart Condie at [email protected]
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