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LandMark White to acquire property valuer Taylor Byrne

Taylor Byrne generated $22.7 million revenue and $2.3 million EBITDA in FY18.
letters M & A on a desk
The acquisition is expected to complete Monday 15 October 2018

LandMark White Limited (ASX:LMW) has entered an agreement to acquire 100% of leading residential property valuation firm Taylor Byrne Pty Ltd.

The consideration of $10.3 million represented 4.5x normalised FY18 EBITDA and will be paid in $5.15 million cash and 8.58 million shares.

This is expected to be earnings-per-share (EPS) accretive in FY19 with the full effects anticipated to be realised in FY20 of 1.8 cents.

Strategic benefits from the acquisition

Taylor Byrne has 26 offices across Queensland and New South Wales broadening LandMark’s geographic footprint, which in turn supports growth in market share.

The two companies see substantial strategic benefits from a combination of the two businesses, both in terms of national scale and capability, leading to revenue growth opportunities.

Margin improvement through internalising work that was previously contracted to third parties within the combined business is another important benefit of the acquisition.

Progression of LandMark’s previously stated growth strategy

LandMark’s CEO Chris Coonan said: “In line with our previously stated acquisition strategy, we have continued to evaluate opportunities for growth.

“We are conscious of the benefits of expanding a geographical footprint, and Taylor Byrne is an ideal fit for that goal.

“We eagerly look forward to delivering the benefits of additional scale, capacities and sustainable earnings growth for our shareholders, and continuing to provide LandMark’s personalised and streamlined service for our existing and new clients.”

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