Johns Lyng Group Ltd: A Major Acquisition in the Australian Construction Sector

In a significant development for the Australian construction industry, Johns Lyng Group Ltd, a prominent non-residential construction service provider, has agreed to a substantial buyout by Pacific Equity Partners. This acquisition, valued at approximately $1.1 billion, marks a pivotal moment for the company, which operates across various sectors including construction, building, support, software products, home maintenance, and call center services.

The Acquisition Details

The acquisition process began with Johns Lyng Group entering into a scheme implementation deed with Sherwood BidCo, a company controlled by funds managed by Pacific Equity Partners. Under the terms of the agreement, Sherwood BidCo will acquire 100% of Johns Lyng’s ordinary shares at $4 per share. This transaction implies an enterprise value of about $1.3 billion, reflecting a substantial premium over the company’s recent share prices.

The offer represents a 77% increase over Johns Lyng’s closing share price before the offer and a 56-66% premium over recent volume-weighted average prices. This significant premium underscores the strategic value Pacific Equity Partners sees in Johns Lyng Group, highlighting its strong position within the construction and engineering sector.

Financial Implications

As of July 8, 2025, Johns Lyng Group’s close price was AUD 3.18, with a 52-week high of AUD 6.19 and a low of AUD 1.91. The company’s market capitalization stood at approximately AUD 897.47 million, with a price-to-earnings ratio of 22.67. The acquisition, fully funded and subject to customary conditions, is expected to provide substantial value to shareholders and position Johns Lyng Group for future growth under new ownership.

Strategic Considerations

The acquisition by Pacific Equity Partners is not just a financial transaction but a strategic move to consolidate and expand its footprint in the Australian construction sector. Johns Lyng Group’s diverse service offerings and nationwide client base make it an attractive acquisition target, promising synergies and growth opportunities for the new owners.

Conclusion

This acquisition is a testament to the robustness of Johns Lyng Group’s business model and its strategic importance in the construction and engineering industry. As the transaction progresses, stakeholders will be keenly watching how this acquisition will shape the future of the company and its role in the broader industry landscape.