Johns Lyng acquires cat repair, strata management businesses
16 November 2022
Johns Lyng Group announced today new business investments of nearly $5.1 million to strengthen its catastrophe repairs and strata management offerings.
The building services provider’s disaster management arm has taken a 60% equity interest in A1 Estimates, a Byron Bay-based insurance repairs estimating business that has worked as a key sub-contractor for its Flood Property Assessment Program in northern NSW.
Johns Lyng says the acquisition – which it completed this month – is potentially worth a maximum $2.341 million. It paid $1.515 million in cash at completion of the deal, with another $550,000 payable in shares as deferred consideration and an earn-out of up to $276,000, also payable in shares.
It has also invested in two Queensland-based businesses, taking an 80% stake in North Shore Strata and full ownership of Adpen Strata, through its strata management subsidiary Bright & Duggan.
The deal for the 80% stake in Sunshine Coast-based North Shore Strata is worth potentially $2.379 million including a $1.933 million cash payment when the transaction was completed this month.
Bright & Duggan’s subsidiary Capitol Strata acquired Brisbane-based Adpen Strata for $322,000 in cash this month.
“These bolt-on acquisitions demonstrate our commitment to building out our Disaster Recovery and Resilience services and scaling our Strata Management Portfolio,” Johns Lyng Group CEO Australia Nick Carnell said.
“Importantly, Johns Lyng will only make acquisitions where there is a consistent and complementary cultural fit of personnel.”
Johns Lyng Head of Disaster Recovery and Resilience Nick Wiesener says the A1 Estimates investment is an “important step” for the company as it continues to build up the Disaster Recovery and Resilience services business.
He says A1 Estimates founder and CEO Tom Jordan will join the Johns Lyng team and that he will make a substantial contribution to the Northern Rivers program and broader offering in the future.
Johns Lyng says the three acquisitions are expected to be immediately earnings accretive.