Johns Lyng Group (ASX:JLG)
has acquired a 60 per cent controlling equity interest in Unitech Building Services, a South Australian-based insurance building services company.
Johns Lyng Group (JLG) is an integrated building services group delivering building and restoration services across Australia and the USA. JLG’s core business is built on its ability to rebuild and restore a variety of properties and contents after damage by insured events including impact, weather and fire events.
Unitech has established a strong base of insurance industry clients, presenting clear synergies with Johns Lyng’s core business offering. The acquisition will increase Johns Lyng’s exposure to the South Australian market.
At completion, Johns Lyng paid $1.9 million in cash, funded from existing reserves plus a potential future earn-out, based on the financial performance of FY21 and FY22. The deal is debt and surplus cash free and expected to be immediately earnings accretive.
Current owners and co-directors Anthony and Deborah Gorle will retain the remaining 40 per cent equity of the business and continue day-to-day management. Unitech and its 26 staff, will be integrated with Johns Lyng’s existing South Australian operation.
Johns Lyng chief executive Scott Didier said, “we’re really pleased to bring Unitech into the Johns Lyng fold. It’s a well-run business with a reputation built on repeat, high quality, customer-centric service provision to both the domestic and commercial building markets."
Shares in Johns Lyng (ASX:JLG)
are trading 0.41 per cent higher at $4.86.