Johns Lyng Group Ltd (ASX: JLG) today announces that it has entered into a binding share purchase agreement to acquire Reconstruction Holdings, Inc. (together with its subsidiaries “Reconstruction Experts”, “RE” or the “Company”) for an up-front Enterprise Value of US$144m, plus a potential earn-out of up to US$58m. The potential earn-out is payable based on the 3 year trailing average EBITDA4 performance of RE, to be tested annually over the 2 years post-Closing (12 months to 31 December 2022 and 2023 (“CY22” and “CY23”)).
Established in Colorado in 2001, Reconstruction Experts is a leading provider of insurance focused repair services to occupied properties in the U.S.
The Company’s primary client base is Homeowner Associations (“HOAs”) – the U.S. equivalent of Strata Managers/Owners’ Corporations, i.e. large multi-family properties including apartments, condominiums and master planned communities.
Reconstruction Experts generated approximately US$127.4m revenue and US$18.5m EBITDA5 for FY21 with approximately 80% of its revenues generated from defect and damage insurance related work (fixing construction defects and man-made or weather-related property damage).
The Company’s key services are highly compatible with JLG’s core competencies.
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