Evolve Education confirms entry into ACT with acquisition of 5 centres
Evolve Education Group has confirmed that they have entered into contracts to acquire 5 five early childhood education and care (ECEC) centres in the Australian Capital Territory, their first such acquisitions in the region.
The centres will have a total licensed capacity of 461 children per day, and as a group are expected to generate around $2.8 million of annualised earnings before interest tax depreciation and amortisation (EBITDA).
The purchase price will be $12.03 million which represents a 4.3 x multiple to EBITDA with settlement, conditional on satisfactory financial and legal due diligence, expected to be on or around 31 March 2020.
Overall the Group, now has a portfolio of ten settled centres with 966 licence places spread across Victoria and Queensland, and five further centres now contracted in the ACT bringing the total portfolio to 15 centres and 1,427 license places in Australia.
The total annualised Australian EBITDA contribution will be around $7.7 million.
Commenting on the acquisition Group Managing Director Chris Scott said “The acquisition will contribute strongly to Australian and Group earnings in CY20 and beyond, further strengthening our presence in Australia as well as establishing an impressive first group of centres in the ACT.”
For more information on the announcement, please see here.