Listed early education and childcare centre operator G8 Education Limited (“G8” or the “Group”) (ASX: GEM) is pleased to announce that it has contracts in place to acquire a portfolio of 19 existing early education and childcare centres from a single vendor.
The total purchase price for the 19 centres is $27.0 million, representing a 3.75 times multiple of purchased EBIT of $7.2m. G8 will fund the acquisition from existing cash and finance reserves.
The portfolio is made up of six centres in Queensland, five in New South Wales and eight in Victoria, with the centres being complementary to G8’s existing portfolio.
G8 has contractual arrangements with each centre, conditional upon customary licensing and landlord approvals. Subject to these and other appropriate conditions being satisfied, the acquisitions are expected to settle before the end of October 2017.
G8 Managing Director, Gary Carroll, said: “The acquisition represents a positive opportunity for the Group to grow its portfolio by acquiring high quality operating centres in complementary locations at an attractive multiple.”
The centres are in addition to the previously disclosed pipeline and are expected to contribute approximately $1m in EBIT for the 2017 financial year, subject to timing of settlement.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.