G8 BUYS 12 CHILDCARE CENTRES

G8 BUYS 12 CHILDCARE CENTRES

LISTED childcare centre operator G8 Education continues to expand its portfolio with the acquisition of 12 childcare centres in Victoria and New South Wales.

The Bundall-based company has paid a total of $18.7 million for the centres which were acquired from a number of different vendors.

The announcement comes ahead of G8 Education releasing its full calendar year profit results, which managing director Chris Scott has previously indicated will beat the average $19 million net profit forecast by a group of analysts.

This compares with an underlying net profit of $13.91 million in the year to December 31, 2011.

Mr Scott says the latest acquisitions are expected to immediately contribute to earnings before interest and tax (EBIT).

“The acquisition of these 12 premium centres is significant to G8 Education’s expansion and will add 871 licensed places to the group,” he says.

The centres have been bought on a multiple of four times EBIT.

The company says $16.6 million is payable to the vendors upon settlement and a further $2.1 million payable 12 months after settlement pending EBIT targets being reached.

The contracts for the centres are expected to settle before the end of April.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...