Johns Lyng Group has acquired a 60% interest in SA-based insurance building services company Unitech, providing a platform for further expansion in the state.

Current Unitech owners and co-directors Anthony and Deborah Gorle will retain 40% equity and continue day-to-day management of the business, which will be integrated with Johns Lyng’s existing SA operations.

Johns Lyng CEO Scott Didier says the deal creates multiple opportunities for the company to expand in SA by leveraging Unitech’s position and its own relationships.

“These include growing both our makesafe business and our large-loss insurance building offering in the local market, and introducing our restoration services business, Restorx, into SA,” Mr Didier said today.

“We also now have an opportunity to build our capacity for catastrophe (CAT) response in SA.”

The transaction involves $1.9 million in cash at completion, funded from existing reserves, plus a potential future earn-out based on financial performance.

The deal, effective July 1, is expected to be immediately earnings accretive, Johns Lyng says.