Johns Lyng Group Limited (ASX:JLG) has announced the acquisition of an 87.5% controlling equity interest in Queensland-based Keystone Group, a leading Insurance Building & Restoration Services (IB&RS) business. The acquisition strengthens JLG's IB&RS strategic growth pillar, providing predictable and recurring baseline revenue through everyday insurance events. The transaction supports JLG's position as a market leader and increases its scale and capacity to effectively respond to large-scale catastrophic weather events.
The acquisition of Keystone Group represents a significant milestone for Johns Lyng as we continue to solidify our position as a leading provider of Insurance Building & Restoration Services in Australia and New Zealand. Keystone's defensive growth characteristics, strong reputation, and management expertise, coupled with our strategic focus on expanding our BaU capacity and enhancing responsiveness to catastrophic events, positions us well to meet the growing demands of the market. We are excited to welcome Keystone's experienced team to the JLG family and look forward to the tremendous value this acquisition will bring to our clients and stakeholders.
Johns Lyng Group's acquisition of Keystone Group strengthens its position in the Insurance Building & Restoration Services sector, providing a significant boost to its strategic growth pillar. The acquisition is expected to be immediately earnings accretive, with an anticipated contribution to FY25(F) revenue of over $100m and EBITDA of approximately $9.0m. This move aligns with JLG's ambitions to expand its capacity and enhance responsiveness to catastrophic events, positioning the company to meet the growing demands of the market. Additionally, the company's update on SSKB Strata and Chill-rite HVAC acquisitions, along with the utilization of its existing revolving credit facility to fund the cash consideration, demonstrates JLG's proactive approach to strategic expansion and financial management.