G8 Education confirms completion of Singapore centres to local provider
G8 Education has confirmed the sale of its 17 owned and 18 franchised centres in Singapore to local provider Nurture Education Group Pte Ltd for approximately S$8.7 million.
The completion of the deal, which was first signalled in the Group’s half year results presentation in August, will mark G8’s exit from Singapore ten years after entering the jurisdiction in October 2010.
Nurture Education Group, a local provider with a network of over 30 childcare centres across Singapore, paid $5.9 million on completion and will pay a further $2.8 million upon, (and subject to), the conversion of franchised centres to company owned centres in the coming months.
The multiple paid was c5.4 x normalised 2019 EBITDA.
Commenting on the news Gary Carroll, Managing Director said. “Following the divestment of 25 centres in Western Australia in November last year , the Group has continued to proactively review and and take steps to maximise the performance and quality of its centre network.”
“This divestment is consistent with that strategy and will enable G8 to focus on optimisation of its portfolio in Australia and delivering a high ‐ quality experience to its families.”
The net proceeds from the sale will be used to reduce net debt with the carrying value of the Singaporean centres being marked down to reflect the proposed consideration.
To read the statement from G8 please click here.