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Mayfield Childcare to acquire South Australian ECEC provider Precious Cargo
Jason Roberts
Jul 09, 2024
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ASX listed Mayfield Childcare has confirmed that it has entered into an agreement to acquire South Australian early childhood education and care (ECEC) provider Precious Cargo.
The deal, which is still subject to the execution and completion of binding transaction agreements, will see Mayfield broaden its footprint in SA and also complement its current Reggio Emilia focused curriculum with Precious Cargo’s Montessori inspired programs.
“We’re thrilled to welcome Precious Cargo into the Mayfield Childcare family, in a move that is as exciting as it is sensible. It’s a significant step in our growth strategy,” Ashok Naveinthiran, Mayfield Childcare’s Chief Executive Officer said.
“Bringing a like minded company with complementary early learning expertise into our portfolio will allow us to expand our national footprint and help children reach their natural potential.”
In addition to entering into a purchase agreement for Precious Cargo, Mayfield has also agreed to immediately assume operational management responsibilities of the Group’ seven centres.
Deal marks end to short period of administration post Precious Cargo difficulties
With Mayfield now committed to acquiring Precious Cargo uncertainty around its future can now be laid to rest marking the end of a relatively short period of administration for the Adelaide based company post the appointment of liquidators in June 2024.
As reported in The Advertiser at the time, Heard Phillips Lieberenz had been named as administrators of Precious Cargo and had written to parents saying no staff had been terminated and it was ‘business as usual.’
“After stabilising the operations of your centre, we will quickly move into a phase where we will look to sell the childcare centre business to an experienced and financially stable new owner – preferably the sale will be as one group,’’ the letter allegedly read.
With a purchaser now secured, and with the day to day management of the Group transferred to Mayfield, the administrators will stand back from direct operations until the transaction completes and their role ceases.
Precious Cargo acquisition builds on Mayfield’s growth commitment
From a strategic perspective, news that Mayfield is to acquire Precious Cargo is consistent with commitments made by the Board and Management after narrowly defeating a “board spill” attempt in April of this year.
“We believe that the Company needs to grow to achieve an optimal scale of operations for a listed childcare operator, and that through growth the Company will be able to drive operational efficiencies and maximise returns for shareholders,” the post General Meeting letter to shareholders read.
The acquisition of Precious Cargo’s seven centres will see the Group’s network increase to 46 centres, with a footprint now extending more evenly across three jurisdictions namely; Victoria, Queensland and South Australia.
Looking ahead, a revised incubator agreement that was recently finalised will provide additional opportunities for growth going forward.
No valuation or pricing details were released by Mayfield regarding the purchase of Precious Cargo.
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