SYDNEY: New Zealand and Australian childcare and education centre operator Evolve Education Group limited (EVO) has contracted to acquire 10 childcare centres in Australia with total licenced capacity of 816 children per day, a news release said.
Contract pricing includes upfront of $27.13m for EBITDA of $6.93m per annum and deferred 5m for an additional $1.27m of EBITDA generated 12 months post settlement.
In summary, if EBITDA totals $8.20m for the 12 months period past settlement, then the total payment would be $32.13m representing an EBITDA multiple of 3.92x.
The acquisitions will be funded from existing cash resources.
Evolve Education Group Managing Director, Chris Scott commented: “This latest acquisition takes the total number of centres operated by EVO to 116 in New Zealand and 20 in Australia.
Minimal additional Support Office costs will be incurred in managing these extra 10 centres”.
The acquisitions will be earrings per share (EPS) positive from settlement.
The Board of EVO announced that the company intends to resume the payment of dividends from the final quarter of 2021. Further details will be announced later in 2021.
https://www.evolveeducation.co.nz/