Saturday, August 15, 2020

ANN: Distribution Agreement with Johns Lyng Group

Zoono Group Limited (Company) (ASX: ZNO) is pleased to announce that it has entered into an Exclusive Distribution Agreement with RestorX Australia Pty Ltd, a subsidiary of Johns Lyng Group (ASX: JLG), for the business to business (B2B) market in Australia.

Zoono’s Z-71 Microbe Shield surface sanitiser and Germ Free24 hand sanitiser tested >99.99% effective against the surrogate for the COVID-19 virus, feline coronavirus1. Zoono believes its products’ efficacy and longevity against pathogens are vital weapons in the global battle against the COVID-19 virus.  Further, Zoono has no reason to believe its products’ qualities will be any less important in the future as the world digests and adjusts to the lessons learned from the current global pandemic. 

Johns Lyng intends to make Zoono products broadly available in commercial markets in Australia, starting with a specific focus on their use within the 70,000 plus strata developments managed by its specialist strata management subsidiary, Bright & Duggan.  

Zoono products will also 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.  RestorX has already registered strong demand in these sectors of its business in the wake of the COVID-19 crisis and, to meet that demand, it will incorporate Zoono products into its deep hygiene cleaning and microbial control protocols.  

Key terms of the agreement are:

  1. An initial 5-year term with a right of renewal for a further 5-years;
  2. Exclusive distributor for Australia for Zoono products manufactured for sale in 5 litre containers and 1,000 litre totes (i.e. the B2B market), with the limited exception of existing animal health, veterinary and other customers which
  3. Target minimum annual purchases are:
    • AUD $5.0m in the first 12 months;
    • AUD $6.0m in year two; and 
    • AUD $7.0m in year three; and thereafter increasing by 5% per annum.  
  4. All product will be sold and distributed under the Zoono brand.
  5. Either party may terminate the Agreement by providing not less than six months’ notice or for breach or insolvency.  Zoono may also terminate if target minimum purchases are not achieved.

Johns Lyng CEO, Scott Didier, sees distribution rights for Zoono to be important as the Group manages a high level of demand in the recovery from COVID-19. 

“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,” Mr Didier said. 

“This is where we specialise and so including a high quality, proven product like Zoono as part of our offering adds real value for our clients.

“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.” 

For Zoono, its CEO, Paul Hyslop, commented: “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.” 

Johns Lyng has over 800 employees across 21 locations in Australia, servicing a diversified client base comprising major insurance companies, commercial enterprises, healthcare, education, local and state governments, owner’s corporations and large corporates.

 Johns Lyng is establishing a specific Zoono division within its organisation.

[click on expand to see Full]

  • Release Date: 29/04/20
  • Summary: Distribution Agreement with John Lyng Group
  • Price Sensitive: Yes
  • Download Document

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