Johns Lyng Group's acquisition announcement

Johns Lyng Group Limited (ASX: $JLG) has announced the signing of binding Share Purchase Agreements to acquire 100% of SSKB Strata and 84% of Chill-Rite HVAC for a total upfront aggregate consideration of $57.6m. The acquisitions are expected to be completed in the first quarter of FY25, with both businesses contributing to JLG's strategic growth trajectory.

Executive commentary on the acquisitions

We are pleased to add these two strategically important businesses to the Group. 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. Strata Services is a particularly important growth pillar for us due to the defensive nature of the earnings and high fragmentation in the sector. The opportunity to introduce better value services and customer solutions across our strata network including repairs and maintenance and improved quality and cost outcomes for customers is compelling. Our focus on organic growth and consolidation has seen us grow to become Australia's second largest strata manager and the addition of SSKB's portfolio strengthens this position and opens up additional growth opportunities across the group. We look forward to working with the SSKB and Chill-Rite leadership teams to deliver strong growth, high levels of service and continued returns for our shareholders.

Summary of the acquisitions and outlook

Johns Lyng Group (ASX: $JLG) has made significant strides in its growth strategy with the acquisition of SSKB Strata and Chill-Rite HVAC. The acquisitions, expected to be completed in the first quarter of FY25, are set to strengthen JLG's market position and drive growth opportunities. With SSKB's portfolio strengthening JLG's position as Australia's second largest strata manager and Chill-Rite's capacity to service larger national contracts, the company is well-positioned for continued expansion. The CEO's emphasis on delivering strong growth, high levels of service, and continued returns for shareholders reflects the company's ambitions to capitalize on synergies and customer opportunities, further solidifying its strategic growth trajectory.