Evolve adds a fifth centre to Melbourne portfolio as acquisitions continue
Evolve Education has confirmed the purchase of a fifth centre in Melbourne that will join the portfolio of four centres announced on 8 October 2019. This marks the second acquisition-related announcement since the commencement of Evolve’s Australian growth phase.
The new centre has a total licensed capacity of 126 places with annualised revenues of $2.6 million and earnings before interest and tax (EBIT) of $0.6 million and was purchased from a trust where Adrian Fonseca, a recently appointed non-executive director of the Group, is the sole director.
The acquisition was funded from existing cash reserves with a total purchase price of $2.45 million which represents a multiple of 4.1 x EBIT.
Commenting on the acquisition, Managing Director Chris Scott said “The acquisition is a good addition to our already premium group of centres in Melbourne which will take the portfolio in Victoria to five centres, which is efficient from an operations management perspective.”
The combined Victorian portfolio of five centres now has 510 licensed places, annualised revenues of $13.4 million and EBIT of $3.1 million with a total cost of $14.25 million, leaving approximately $9.5 million of existing reserves available for further acquisitions.
To read the announcement, please click here.