contracts to acquire five premium childcare an

26 August 2013
Contracts to acquire five premium childcare and education centres
Listed Queensland-based childcare and education centre operator G8 Education Limited (ASX: GEM) is pleased to announce that it has contracted to acquire five premium childcare and education centres from a number of different vendors. The childcare and education centres are located across Queensland, South Australia and Victoria.
Business acquisition contracts have been executed, conditional upon customary licensing approvals and legal due diligence. Subject to these conditions being satisfied the acquisitions are expected to settle at the end of October 2013.
The purchase price for the five centres is $4.6 million which represents 4 times anticipated EBIT for the 12 months post settlement. $4.25 million is payable at settlement and a further payment of $0.35 million is conditional upon the centre based EBIT target being achieved in the 12 months post settlement.
G8 Education Limited Managing Director, Chris Scott, said: “The acquisition of these five premium centres is part of G8 Education’s expansion and will add 397 licensed places to the Group. The five centres are expected to contribute to EBIT immediately upon settlement.”
ENDS
Chris Scott Managing Director