IQE
04/12/2014 08:30
ASSET
PRICE SENSITIVE
REL: 0830 HRS Intueri Education Group Limited
ASSET: IQE: IQE - Intueri acquires Academy Group NZ Limited
MARKET RELEASE
Date: 4 December 2014
IQE - Intueri acquires Academy Group NZ Limited
Intueri Education Group (IQE) today announces that it will acquire the
Academy Group NZ Limited (Academy New Zealand), one of New Zealand's oldest
private education providers.
Intueri Group CEO, Rob Facer, said the acquisition of Academy New Zealand
will add a new capability to Intueri.
"The acquisition is complementary to our current business in that it offers
Trades Level 1, 2 & 3 qualifications, providing pathways for Academy students
to continue on to programmes in Intueri's other New Zealand Schools. It also
realises Intueri's strategy to consolidate the domestic education sector in
New Zealand and provides attractive strategic and financial benefits."
For a consideration of 4.0 times 2015 actual Earnings Before Interest and Tax
(EBIT), the transaction is expected to enhance Intueri's revenue by NZD5.0
million, and increase earnings by NZD1.25 million, before synergies are
realised.
An initial payment of NZD4.0 million, funded from Intueri's current debt
facilities, will be made upon completion of the acquisition, expected to be
prior to 31 December 2014 and subject to standard regulatory approval. The
balance of the acquisition price will be payable upon the completion of the
31 December 2015 annual accounts of Academy New Zealand.
Academy New Zealand is a family owned, Category 1, private tertiary
establishment, specialising in practical, employment focussed courses.
Academy New Zealand attracts New Zealand Government funding through the Youth
Guarantee (YG) scheme and Student Achievement Component (SAC). Offering a
range of courses including construction and motor trades, the Academy is the
only face-to-face provider of pharmacy technicians in New Zealand and one of
only a handful offering floristry training. It enrols around 450 domestic
students per annum.
Andrew Murray, General Manager of Academy New Zealand, has agreed to assist
with overseeing the Academy Group operations during 2015 until the final
acquisition payment is made. During this time, Mr Murray and Intueri's
Executive Team will be assessing and implementing programmes to capture
synergies available through the integration process.
"We are excited to secure the future for our foundation learners and
specialty Schools of Pharmacy and Floristry. Academy New Zealand has for 28
years specialised in lifting the aspirations of and engaging foundation
learners in education, preparing them for employment and supporting them to
achieve a stepping stone to higher qualifications. This is a positive
opportunity for the Academy and we look forward to being part of the Intueri
Group.", said Mr Murray.
Rodney Craig Marvin
Chief Financial Officer, Intueri Education Group Limited
ENDS
End CA:00258471 For:IQE Type:ASSET Time:2014-12-04 08:30:16
