Johns Lyng (ASX:JLG) completes $230m spree on Reconstruction Holdings

Company News

by Melissa Darmawan

After Johns Lyng (ASX:JLG) unveiled its plans to acquire US insurance provider Reconstruction Holdings in December last year, the building services group completed its $230 million capital raising and the acquisition as of 1 January this year.

The move comes after the company embarked on a long and extensive search spanning 18 months to expand its footprint in the US, said chief executive officer, Scott Didier in his ASX announcement on 9 December 2021.

The retail component of the entitlement offer closed on December 30 raising about $9 million after the institutional portion successfully raised $221 million on 13 December 2021.

The institutional placement was strongly supported by existing institutional shareholders after the company initially earmarked the capital raise to involve a $187.5 million institutional placement.

Combining Johns Lyng’s prior guidance with Reconstruction's expected second half 2022 contribution, the company upgraded its financial year 2022 forecast revenue to $732.3 million and EBITDA to $73.1 million.

As of 1 January this year, Scott Didier took on the post as global chief executive officer.

Shares in Johns Lyng (ASX:JLG) are trading 1.7 per cent lower at $8.74.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.