Johns Lyng Group raising $65m to fund acquisitions, JPMorgan on ticket
Property services business Johns Lyng Group was expected to launch a $65 million raising on Wednesday morning to bankroll two acquisitions for its strata management business.
Scott Didier likes PE-owned Smoke Alarms Australia. Paul Jones
Sources said Johns Lyng would use the proceeds to buy Merchant Place’s Smoke Alarms Australia, which was put up for sale earlier this year via Miles Advisory and Link Fire Holdings. At the time, Smoke Alarms Australia had just under $30 million annual revenue and 25 per cent EBITDA margin with annuity-style recurring revenues.
The two acquisitions would be 5 per cent EPS accretive and are being pitched to investors as a strategic play for Johns Lyng. They would fit nicely with its strata management business and deliver revenue synergies, fund managers were told.
The raise would be structured as a variable price bookbuild between $5 and $5.20 a share, which would be a tight 4.2 per cent to 7.9 per cent discount to Johns Lyng’s $5.43 last close.
It comes after the company had investment bank JPMorgan crossing fund managers on Wednesday evening to build support for the raising.
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