Evolve Education Group completes sale of New Zealand business

Jason Roberts

Oct 04, 2022

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Evolve Education Group has completed the sale of its portfolio of early childhood education and care (ECEC) centres in New Zealand to Anchorage Capital Partners, the previous owners of Affinity Education Group.

Evolve Education Group has completed the sale of its portfolio of early childhood education and care (ECEC) centres in New Zealand to Anchorage Capital Partners, the previous owners of Affinity Education Group.

Under the terms of the agreement Evolve has sold 100 per cent of the shares in its NZ subsidiary for an enterprise value of NZ$46 million less net debt, a CAPEX adjustment and associated settlement adjustments.

The exit multiple was 13x FY21 underlying EBITDA and it is understood that the net consideration, after deductions, to Evolve will be around NZ$40 million.

“We are pleased to confirm the completion of the sale of our NZ business to Anchorage Capital,” Chris Scott, Managing Director said.

“With the end of 2022 fast approaching the significant flexibility that our cash rich balance sheet will provide us as we move into next year will be significant. When this is combined with the ongoing robust performance of our Australian portfolio of 24 centres we are optimistic about the Group’s overall prospects going forward.”

The Group’s stated ongoing strategy is to execute a targeted expansion in Australia using the proceeds of the sale to fund growth at a time that was described by the Board of Directors in their Address to Shareholders as “highly favorable for centre acquisitions and market consolidation.”

As part of the transaction terms Evolve has undertaken a name change that will see the Group now known as Embark Education Limited with a new website URL established as www.embarkeducation.com.au.

The Group’s NZX and ASX equity tickers will remain as before, namely EVO.

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