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.