Mayfield provides additional detail on acquisition of Precious Cargo portfolio

Listed ASX provider, Mayfield Childcare, has provided additional detail on the acquisition of the recently liquidated early childhood education and care provider, Precious Cargo, including valuation, operational performance and brand strategy. 

Mayfield, via an update in early July 2024, confirmed that it had entered into an agreement to acquire the South Australian provider and its seven Montessori focused early childhood education and care (ECEC) services for a total consideration of $4.8 million. 

The following additional detail on the deal has been provided:

1. Valuation multiple

Precious Cargo’s seven centres generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.3 million over the twelve months ending 31 May 2024 representing a 3.8 times multiple on the acquisition price of $4.8 million. 

2. Historic occupancy 

Occupancy across the seven centre’s 882 license places averaged 61 per cent across the twelve months ended 31 May 2024. 

3. Brand strategy 

The acquisition terms include the Precious Cargo brand, including its capabilities enabling Montessori pedagogy and curriculum which Mayfield intends to continue as a complementary curriculum alongside its existing Reggio Emilia focused offer operating on across its existing network. 

The Group has now confirmed that agreements have now been formally executed with the acquisition expected to complete on 31 August 2024 at which point Mayfields national footprint will increase to 46 centres. 

To review the press release click here.