Evolve Education Group Ltd has entered into a contract to acquire 6 early childhood education centres in the South Island, increasing its portfolio to 126 centres by June.
The 6 Little Wonders centres are in Dunedin, Oamaru, Timaru & Cromwell, where Evolve had no representation. Little Wonders are purpose built-centres, averaging 80% occupancy in areas of stable & growing demand.
Evolve chief executive Alan Wham said the 6 centres would settle in June and were expected to deliver annualised ebitda (earnings before interest, tax, depreciation & amortisation) of $1.3-1.5 million.
Mr Wham said that, to facilitate the acquisition, Evolve director Mark Finlay & associated interests would acquire the premises they operate in and lease them to Evolve: “The leases are on standard commercial terms for early childcare education centres, for an initial lease term of 12 years and an aggregate initial rental of $100,00/month.”
Mr Finlay was excluded from Evolve board decisions on these leases.
Evolve bought 2 mid-sized centres in Auckland & Canterbury in March and sold a smaller West Coast centre in April.
Attribution: Company release.