LandMark White Limited (ASX: LMW) Acquires Taylor Byrne For $10.30 Million

  • Oct 10, 2018 AEDT
  • Team Kalkine
LandMark White Limited (ASX: LMW) Acquires Taylor Byrne For $10.30 Million

LandMark White (ASX:LMW) arrowed up on the execution of acquisition agreement between LandMark White Limited and Taylor Byrne Pty Ltd.

LandMark White Limited yesterday announced the acquisition of 100% of Brisbane-based property valuer Taylor Byrne for $10.30 million in cash and shares jointly.

The purchase consideration has been agreed to be paid in $5.15 million cash and 8,583,333 shares in LMW at an issue price of $0.60 per share, subject to voluntary escrow. Additional 440,834 LMW shares are said to be issued in the settlement of advisor fees. The company informed that transaction will generate additional ~$22.7 million annualized revenues and ~$2.3 million EBITDA.

Taylor Byrne is valuation services provider which was established in the year 1960. It offers consultancy services on property valuation and portfolio analysis based on market specific research. Headquartered in Brisbane, the company has its presence across Queensland, New South Wales and Adelaide. 

How will this acquisition benefit LandMark White business?

Well if its about benefits from acquisition of Taylor Byrne, the expansion of LMW’s geographical footprints ranks number 1. With the takeover of company dealing into the similar business, LMW has broadened its growth opportunities in residential, commercial and statutory market segments. It possesses the potential to make the LandMark White sit on the top in the list of Australian valuation services companies.

The combined synergies of two businesses is expected to deliver top-line growth with the anticipation of 50% increase in LMW’s consolidated annual revenue. This will take the LMW revenue to $67.8 million from $45.1 million pre-transaction. Further, the transaction is forecasted to be accretive to Earnings Per Share in FY19 with full effects expected to be realized in Fiscal 2020 of approximately 1.8 cents earnings per share.

The acquisition of Taylor Byrne also allows LandMark White to internalize work earlier contracted to third parties which will improve the gross margins of consolidated business. LMW told post transaction Net Assets of the company will increase by 15% to $40.8 million while LMW’s issued shares will increase by 12% to 85,134,112, including advisory shares to be issued.

This acquisition is due to be completed on 15 October 2018 upon which Landmark White intends to issue consideration shares to the shareholders of Taylor Byrne.

It has also been informed that post completion of acquisition transaction, there will be no change in the Board and executive management of LandMark White Limited. The Annual General Meeting of shareholders of Landmark White Limited is scheduled to be held on 8 November 2018.

On the acquisition news, the stock of LandMark White Limited has resumed trading at higher price. At the time of writing, the share price of LandMark White Limited has surged by 1.754% to $0.580 (10 October 2018, 3:07 PM AEST). While the stock has seen a performance change of -14.93% over the past one year, it is currently trading at a PE of 10.480 x with market capitalization of $43.38 million.

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