Assaf family regains control of Montessori Academy as debt refinance completes 

The founders of Montessori Academy, Charles and Colette Assaf, have regained majority control of Australia’s largest Montessori provider of early childhood education and care (ECEC) services following a recently completed debt refinance exercise. 

The deal raised sufficient capital to fund the buy back of 16 per cent of the businesses shares owned by Greentown Education Group, a wholly owned subsidiary of HKSE listed Greentown Service Group Co Ltd who acquired a 56 per cent interest in the company in 2019.

After the transaction the Assaf Family’s stake will rise to 60 per cent, and that of its overseas shareholder will fall back to 40 per cent. 

It is understood that Greentown Education initially paid around $67 million for its 56 per cent stake in Montessori Academy and its twenty three centres, valuing the total business at $120 million, and representing a purchase multiple in excess of 6.5 times earnings. 

The terms of the buy back agreement have not been disclosed however the AFR has previously reported that the Assaf family also owns an option, that expires in three years, to acquire a further 35 per cent of shares from Greentown. 

Montessori Academy was founded in the year 2000 by husband and wife team Charles and Colette Assaf, with the purpose of providing families with a high-quality alternative to play- based early childhood services.

Since that time the company has steadily grown to its current size (in excess of fifty centres), all located in New South Wales, and developed a reputation of providing a high quality of provision of care with 95 per cent of centres rated meeting or exceeding the National Quality Standards.

Information in this story was drawn from GT Law and the Australian Financial Review.