Sharechat Logo

Evolve Education Group Limited (NZX: EVO) Announces Acquisitions and Intention to Resume Dividend

Friday 5th March 2021

Text too small?

Acquisition of Child Care Centres

Listed New Zealand and Australian childcare and education centre operator Evolve Education Group Limited announces that it has contracted to acquire 10 childcare centres in Australia with total licenced capacity of 816 children per day. All contracts are conditional upon customary approvals (such as licensing). Contract pricing is as follows:

Upfront $27.13m for EBITDA of $6.93m per annum

Deferred $ 5.00m for an additional $1.27m of EBITDA generated 12 months post settlement.

In summary, if EBITDA totals $8.20m for the 12 months period post settlement, then the total payment would be $32.13m representing an EBITDA multiple of 3.92x. The acquisitions will be funded from existing cash resources.

Evolve Education Group Managing Director, Chris Scott commented: “This latest acquisition takes the total number of centres operated by EVO to 116 in New Zealand and 20 in Australia. Minimal additional Support Office costs will be incurred in managing these extra 10 centres”. The acquisitions will be earnings per share (EPS) positive from settlement.

Dividend Payment

The Board of EVO is pleased to announce that the company intends to resume the payment of dividends from the final quarter of 2021. Further details will be announced later in 2021.

Please see the link below for details:

EVO announces acquisitions and intention to resume dividends

Source: Evolve Education Group Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fonterra provides milk price, performance, strategy update
Revised Chatham announcement concerning PDAC
23rd June 2022 Morning Report
Greenfern Industries attains important industry certificati
Appointment of Group General Manager Sales & Service
NZME confirms Google agreements
FBU Investor Day FY22 EBIT guidance c.$750m reiterated
Chatham Reports on Multiple Milestones Achieved at PDAC
22nd June 2022 Morning Report
21st June 2022 Morning Report