Johns Lyng Group Takeover is now final, as the company has released an announcement stating that it has signed a Scheme Implementation Deed (SID) with Sherwood BidCo Pty Ltd (the Bidder). Sherwood BidCo is owned and operated by funds managed and advised by Pacific Equity Partners Pty Limited (PEP) and its associated entities. Soon after the release of the announcement, the share price of Johns Lyng Group Ltd (ASX: JLG) started to surge. The previous day’s close was A$3.18. And on July 11 (today), after releasing the announcement, the stock opened at A$3.90, up over 22%. It was one of the most significant single-day gains ever in the history of ASX.
Figure 1: Stock price performance of Johns Lyng Group in the last 3 months, with a significant increase today, July 11th, 2025. [Market Index]
Details of Johns Lyng Group Takeover
Under the terms of the Scheme Implementation Deed, PEP, through its affiliate Sherwood BidCo, has agreed to acquire 100% of Johns Lyng’s shares at $4.00 per share as part of the Scheme Consideration. The Scheme Consideration values JLG’s equity at approximately $1.1 billion and implies a total enterprise value (EV) of around $1.3 billion. This offer represents:
- A 8% premium to the prior day’s close of $3.18
- A 77% premium to the stock price on 15 May 2025, the day before PEP’s initial approach
- A significant premium over 30- and 90-day volume-weighted averages
The deal is expected to be implemented through a Scheme of Arrangement, subject to shareholder and court approvals. A final vote has been planned for October 2025, and implementation by November 2025.
Mr. Peter Nash, Johns Lyng Group’s chairman, has applauded the takeover agreement with PEP: “We are pleased that PEP has recognised the value of JLG’s integrated building services operations across Australia, New Zealand and the United States. The Scheme is an attractive transaction that provides JLG Shareholders with the opportunity to receive cash at a material premium.”
Figure 2: Mr Nash is the Chairman of Johns Lyng Group and the former Chairman of KPMG Australia. [Image collected from: MBS]
In fact, PEP Managing Director Matthew Robinson appreciated the business foundation of JLG: “Scott and the management team of Johns Lyng Group have built a strong business with a distinctive culture. We look forward to working with the Company and its employees in continuing to support customers into the future.”
Strategic Importance of the Deal
The company has spent recent years expanding its footprint across Australia, New Zealand, and the United States. Johns Lyng, which has 18 operational brands, offers a variety of building services, such as:
- Strata management
- Fire and flood restoration
- Air conditioning and electrical services
- Insurance building works
In 2023, it acquired Smoke Alarms Australia and Linkfire and secured an 87.4% controlling stake in Keystone Group, a Queensland-based firm, all part of a broader strategy to strengthen its insurance and property services portfolio.
However, high cost-of-living pressures and a cooling real estate market impacted the company’s performance earlier this year. This led to a 31% plunge in its share price in February during the earnings season. As of today (11 July 2025), the stock is down 34.57% over the past year, underperforming its sector by 54.70% and lagging the ASX 200 by 43.45%.
Figure 3: Performance of the stock Price of JLG in different time frames [Colitco]
Takeover Conditions and Timeline
It is necessary to meet several conditions for the Johns Lyng Group takeover to be approved:
- FIRB (Foreign Investment Review Board) approval
- S. antitrust clearance under the Hart-Scott-Rodino Act
- Shareholder approval in October 2025
- Court approval and Scheme Implementation in November 2025
JLG’s board and legal advisers believe the transaction will meet these requirements and proceed as planned.
End Note
The Johns Lyng Group takeover has reshaped the company’s narrative. Its position shifted from that of an underperformer to an acquisition target almost overnight. The PEP-led $4.00 per share offer provides shareholders with an attractive premium and also allowed for leadership continuity and future business potential through scrip options.
