G8 SNARES 19 CENTRES FOR $25.7M

Written on the 10 July 2014 by Nick Nichols

G8 SNARES 19 CENTRES FOR $25.7M G8 EDUCATION has boosted its portfolio of childcare centres by 19 following separate purchase deals with a number of vendors totalling $25.7 million.

The listed Gold Coast-based childcare centre operator says the acquisitions, to be funded from existing cash reserves, will settle in October.

The cash outlay for the centres will comprise $24.3 million on settlement, plus a further $1.4 million dependent on the centres achieving pre-tax earnings targets.

The centres have been acquired just under G8 Education’s target multiple of four times earnings.

“The acquisition of these premium centres at 3.9 times anticipated EBIT for the 12 months post settlement is another key milestone in the group’s acquisition strategy,” says G8 Education’s managing director Chris Scott.

“The centres are expected to contribute to EBIT (earnings before interest and tax) immediately upon settlement.”

The latest deal boosts G8’s childcare places by 1213, taking its total Australian portfolio to 29,703 childcare places.

Earlier this year, G8 Education bolstered its finances through a $150 million debt raising. The funds come on top of $120 million previously raised through debt issues since August last year.

Some of those funds were used to retire about $46 million in senior debt with the Bank of Western Australia, while the remainder has been set aside for further acquisitions.

G8 Education says it currently has no secured debt.



Author: Nick Nichols

Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter