Johns Lyng (ASX:JLG) completes $230m spree on Reconstruction Holdings

After Johns Lyng (ASX:JLG) unveiled its plans to acquire US insurance provider Reconstruction Holdings in December last year, the building services group completed its $230 million capital raising and the acquisition as of 1 January this year.

The move comes after the company embarked on a long and extensive search spanning 18 months to expand its footprint in the US, said chief executive officer, Scott Didier in his ASX announcement on 9 December 2021.

The retail component of the entitlement offer closed on December 30 raising about $9 million after the institutional portion successfully raised $221 million on 13 December 2021.

The institutional placement was strongly supported by existing institutional shareholders after the company initially earmarked the capital raise to involve a $187.5 million institutional placement.

Combining Johns Lyng’s prior guidance with Reconstruction’s expected second half 2022 contribution, the company upgraded its financial year 2022 forecast revenue to $732.3 million and EBITDA to $73.1 million.

As of 1 January this year, Scott Didier took on the post as global chief executive officer.

Shares in Johns Lyng (ASX:JLG) are trading 1.7 per cent lower at $8.74.