Johns Lyng Group agrees to $1.1b private equity buyout
Shares in an Australian building services company have surged after agreeing to be bought by Pacific Equity Partners for $4 per share, or $1.1 billion.
Building services company Johns Lyng Group has agreed to be acquired by an Australian private equity firm for $1.1 billion.
Pacific Equity Partners has agreed to pay $4 per share, a 25 per cent premium to Johns Lyng Group’s closing price on Thursday and a 77 per cent premium from its closing price from May 15, the day before the firm’s initial approach.
Johns Lyng shares were up 22 per cent to $3.88 on Friday morning.
Operating across Australia, New Zealand and the US, Johns Lyng Group operates across 18 brands, providing building services ranging from strata management to fire and flood restoration and air conditioning maintenance.
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It was founded as Johns & Lyng Builders by the Lyng family in Melbourne in 1953, and then acquired in 2003 by current CEO and managing director Scott Didier, who floated it on the ASX in 2017.
Didier intended to vote his 17.6 per cent stake in favour of the scheme, the company said.
Johns Lyng Group chairman Peter Nash said the company was pleased Pacific Equity Partners had recognised the value of its integrated building services operations in three countries.
He called the scheme an attractive transaction that provided shareholders with the opportunity to receive cash at a material premium.
Shareholders will be asked to approve the takeover in October and, if they vote in favour, the scheme is set to be implemented in November.
