Johns Lyng unveils double acquisition of SSKB, Chill-Rite
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The news: Listed building services provider Johns Lyng Group will acquire strata management company SSKB Strata and air conditioning specialists Chill-Rite HVAC for a total consideration of $57.6 million.
The numbers: The acquisitions of 100% of SSKB and 84% of Chill-Rite are expected to generate FY25 revenue of more than $45 million and EBITDA of around $9 million, the company said.
Johns Lyng will pay $28.8 million in cash, with the remaining amount to be paid on completion of the deal, which is expected to take place in the first quarter of FY25. The company noted there is also an aggregate earn-out of up to $15.4 million, which is contingent on FY25 and FY26 EBITDA.
Johns Lyng shares edged lower after the announcement, down 0.5% to $5.77 by 12:20pm AEST.
The context: Johns Lyng's acquisition of SSKB, which manages a portfolio of over 44,000 lots across 790 schemes on the east coast of Australia, will see SSKB's senior management team remain with the business with scope to become equity partners.
Meanwhile, the founder and majority of Chill-Rite, a provider of heating, ventilation and air conditioning services in regional New South Wales, will reinvest a portion of the acquisition proceeds into a 10% equity interest into the combined business.
What they said: Johns Lyng Australia CEO Nick Carnell said: "Both SSKB and Chill-Rite have strong financials, solid reputations in their respective industries and experienced, growth-minded senior management teams".
"Critically, they are aligned with our core capabilities and will offer additional complementary sales opportunities moving forward," he said.
The source: ASX announcement
