Johns Lyng Group will acquire SSKB, a strata management services provider with a portfolio of more than 44,000 lots across 790 schemes in the eastern states.

It is also taking an 84% stake in Chill-Rite HVAC, a provider of heating, ventilation and air-conditioning services in regional NSW.

The listed building services provider says the two deals have a combined value of $57.6 million. It will make cash payments of $28.8 million and the remainder will be in the form of Johns Lyng Group stock upon completion of the transactions in the first quarter of this financial year. 

The acquisition terms feature an additional aggregate earnout of up to $15.4 million, contingent on FY25 and FY26 earnings performance.

Johns Lyng Group is buying SSKB via its strata subsidiary Bright & Duggan.

It says the deal “further strengthens Bright & Duggan’s position as a leader in the strata sector and marks a significant step in the business’ strategic growth trajectory”.

Bright & Duggan will have a strata portfolio exceeding 140,000 lots after the acquisition.

“Strata services is a particularly important growth pillar for us due to the defensive nature of the earnings and high fragmentation in the sector,” JLG Australia CEO Nick Carnell said. “The opportunity to introduce better-value services and customer solutions across our strata network, including repairs and maintenance and improved quality and cost outcomes for customers, is compelling.

“Our focus on organic growth and consolidation has seen us grow to become Australia’s second-largest strata manager, and the addition of SSKB’s portfolio strengthens this position and opens up additional growth opportunities across the group.”

Johns Lyng Group’s core insurance building and restoration services business is its biggest revenue earner.

In recent years it has invested heavily in strata management companies to strengthen its home services offerings.