Johns Lyng expands property services portfolio after $65m raise
Small cap darling Johns Lyng Group has agreed to buy Smoke Alarms Australia and LinkFire, adding to its burgeoning property services portfolio.
The company raised $65 million on Wednesday to help finance the acquisitions, part of Johns Lyng’s ambitions to grow an “essential home services” arm. The deal adds fire, electrical and gas compliance, as well as testing and maintenance offerings to its existing operations for homeowners and property managers.
Johns Lyng chief executive Scott Didier is hopeful the acquisitions of Smoke Alarms and LinkFire will add steady, subscription-based revenue to its overall property services business. Paul Jones
Johns Lyng will assume total control of Smoke Alarms for a $50 million upfront payment, and up to $11 million more in earn out payments linked to its 2024 financial year earnings before interest, tax, depreciation and amortisation performance, the company said in an investor presentation.
Smoke Alarms has more than 2400 customers, 172 employees and its revenue has steadily grown to $25.6 million for the 2023 financial year from $21.2 million two years earlier. The company’s private equity owner Merchant Place Investments hired Miles Advisory to explore a sale, Street Talk reported in March.
Linkfire will receive $11.7 million cash plus up to $6.3 million in earn outs linked to its 2024 and 2025 financial year EBITDA numbers. The company employs about 90 people and its revenue spiked to $18.7 million this financial year from $14.7 million in 2021.
Earn outs for both acquisitions are payable in cash or shares, Johns Lyng said.
The company intends to on-sell around 10 per cent in Smoke Alarms’ equity to senior management, while LinkFire management will retain 30 per cent of the
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