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Evolve to acquire education facilities
Posted on Friday, 19 May 2017 12:59
New Zealand-based Evolve Education Group has inked an agreement to purchase six early childhood education (ECE) centres in South Island for an undisclosed amount.
As a result of the acquisition, the buyer will increase its portfolio to 126 facilities by June 2017.
The transaction follows on from its purchase of two high-quality mid-size centres in March, with one in Auckland and one in Canterbury.
Located in the lower part of the South Island in Dunedin, Oamaru, Timaru and Cromwell, the Little Wonders facilities are purpose built and average 80.0 per cent occupancy.
The six centres will be bought in June 2017, and are expected to generate annualised earnings before interest, tax, depreciation and amortisation of between NZD 1.30 million (USD 900,081) and NZD 1.50 million.
Auckland-headquartered Evolve is billed as a leading provider of high-quality ECE services in New Zealand, with 120 facilities nationwide operating under a number of brands including Lollipops Educare and Leaps and Bounds.
The company, which was formerly known as Era Education Group, is listed in New Zealand and Australia, and its stocks finished down at NZD 1.05 yesterday to give a market value of NZD 187.19 million.
Evolve generated revenue of NZD 137.38 million in the 12 months ended 31st March 2017, a significant increase on NZD 32.94 million in the previous year.
Net profit for the period totalled NZD 15.64 million, compared to a loss of NZD 8.06 million in FY 2016.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 92 deals targeting child day care companies announced worldwide since the beginning of 2016.
The largest of these was private equity firm Partners Group’s AUD 440.00 million (USD 327.18 million) acquisition of Australia-based Guardian Early Learning in June 2016.
© Zephus Ltd