The Johns Lyng Group Ltd (ASX: JLG) share price has jumped 22% after accepting a takeover offer.
Johns Lyng is a company involved with the repair and restoration of buildings and contents after insurable events such as fire, flood and so on. Clients include governments and insurance companies.
Accepting the takeover offer
Johns Lyng announced it has entered into a takeover with private equity group Pacific Equity Partners.
The takeover price is $4 per Johns Lyng share price, which is 34% higher than it was trading at a month ago. It’s also 77% higher than John Lyng’s closing share price on 15 May 2025 and 57% higher than it was on 6 June 2025.
This offer prices Johns Lyng at $1.1 billion and an enterprise value of $1.3 billion. That means the enterprise value is trading at 10.3x the EBITDA.
Some management and shareholders will be able to elect to receive some or all of their offer as shares in the bidder’s holding company.
Johns Lyng said the offer is fully funded and subject to limited usual conditions such as court approval.
What do the board think?
John Lyng’s independent board committee, comprising non-executive chair Peter Nash and non-executive directors Peter Dixon, Alison Terry and Alexander Silver have unanimously recommended shareholders accept the offer in the absence of a superior offer and an expert concludes it’s in the best interests of the owners of Johns Lyng shares.
The Johns Lyng Chair Peter Nash said:
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.
The IBC’s unanimous recommendation was based on a thorough evaluation of a range of factors including JLG’s intrinsic value under different scenarios and the potential medium-term share price without the Scheme, and taking into consideration JLG’s underlying business performance over the last two years and current business momentum.
Final thoughts on Johns Lyng shares
Long-suffering shareholders may be pleased with how the company has managed to achieve this takeover and recover a lot of lost ground of the last few years. If I were a shareholder, I’d happily sell now and move onto something else because the shares are trading closely to the offer price.
There are plenty of other ASX growth shares that could be good places to put the money towards.
