- Zoono Group (ZNO) has entered an exclusive five-year distribution agreement with the Johns Lyng Group (JLG)
- Johns Lyng will distribute Zoono’s sanitiser products through its commercial buildings, its RestorX’s business, and in cleaning and healthcare facilities
- RestorX, a Johns Lyng subsidiary, will distribute the products in five-litre containers and 1000-litre totes for a minimum price of $5 million in the first year
- According to Zoono, Johns Lyng has a very large customer base which will see the company’s products broadly marketed
- Both companies expect sanitiser demand will not subside as the world recovers from COVID-19
- Johns Lyng CEO Scott Didier says people and businesses will want to deep clean their buildings and surfaces as work returns to normal
- Zoono is up 4.19 per cent and shares are trading for $1.74 each
Zoono Group (ZNO) has entered an exclusive five-year distribution agreement with the Johns Lyng Group (JLG).
The NZ-based healthcare company came to prominence during the COVID-19 pandemic. Its antimicrobial and sanitiser products have netted the company millions of dollars over the past quarter.
Zoono’s 99.99 per cent effective surface and hand sanitisers have proven effective against pathogens and the feline coronavirus during the crisis, but Zoono reiterates the significance of its products will exceed beyond the current pandemic.
Johns Lyng intends to make Zoono’s sanitiser products more broadly available in commercial markets in Australia.
Under the partnership, Zoono products will be available through Johns Lyng’s commercial building division and its building remediation business, RestorX, for use within domestic and commercial buildings, as well as in the cleaning of educational and healthcare facilities.
Under the five-year agreement, RestorX will distribute Zoono’s products manufactured for sale in five-litre containers and 1000-litre totes for the business-to-business (B2B) market. However, existing animal health, veterinary and other customer contracts with Zoono will not be affected by the deal.
“We are delighted to be entering into this agreement with Johns Lyng. They have national coverage and can provide Zoono with distribution and warehousing into all B2B sectors, including via access to its very large customer base,” Zoono CEO Paul Hyslop said.
“It’ll be critical for people and businesses to get back to normal operations as quickly as possible as the virus threat passes and that’ll involve disinfecting and deep cleaning of buildings, facilities and surfaces,” Johns Lyng CEO Scott Didier stated.
“We are already seeing strong demand for preparation of buildings for a return to normal operations and that is where this product is going to be really important,” he added.
Both parties are targeting annual purchases amounting to at least $5 million in the first 12 months, $6 million in year two, $7 million in year three, and thereafter a five per cent increase per year. The contract can be renewed for another five years after it expires in 2025.
Zoono is up 4.19 per cent on the news, with shares trading for $1.74 each at 11:23 am AEST. Meanwhile, JLG shares have undergone no change.