Johns Lyng Group has acquired an 87.5% controlling equity interest in Keystone Group, a Queensland-based insurance building and restoration services provider.

Australia CEO Nick Carnell says the investment is a “significant milestone for Johns Lyng as we continue to solidify our position as a leading provider of insurance building and restoration services” in Australia and New Zealand.

Johns Lyng reported group revenue of $1.05 billion last financial year, with nearly 91% generated by its insurance building and restoration services unit.

The listed business says Keystone serves a blue-chip customer base providing insurance repairs, restoration and hazardous material removal through subsidiaries Rizon, Remeed and Corvex. In recent years, it has developed a significant commercial insurance arm that is complementary to Johns Lyng’s offerings.

“Keystone’s defensive growth characteristics, strong reputation and management expertise, coupled with our strategic focus on expanding our [business as usual] capacity and enhancing responsiveness to catastrophic events, positions us well to meet the growing demands of the market,” Mr Carnell said.

Johns Lyng will pay an upfront consideration of $44.1 million in cash plus $3.6 million in Johns Lyng Group fully paid ordinary shares, to be issued on completion of the deal, which is expected in the first half of this financial year.