The directors of G8 Education Limited (GEM) are pleased to announce the proposed acquisition of the assets of Cherie Hearts Group International Pte Ltd and its subsidiaries (‘Cherie Hearts’), the largest private provider of child care centres and kindergarten groups in Singapore.
The Cherie Hearts business will comprise 18 owned child care businesses, 48 franchised child care businesses and majority interests in a training business and an enrichment business. Additionally 23 franchisees have executed agreements which are awaiting completion. The purchase price is AUD19.23 million. The transaction will be fully funded from cash reserves and the assumption of AUD5.65 million in existing debt. The transaction is subject to several conditions precedent including approval from G8 Education’s financier and licensing approvals from the relevant regulatory body in Singapore. Forecast EBIT for The Cherie Hearts Group for calendar year 2011 is AUD4.3 million.
Cherie Hearts Group International Pte Ltd (Cherie Hearts) is the largest private child care operator in Singapore. Cherie Hearts offers both an ownership and franchise model. Cherie Hearts provides quality child care and pre school education to children aged between 2 months and 12 years of age, and offers bi‐lingual (English and Chinese Mandarin) full day and half day programs to children. Cherie Hearts currently caters for approximately 5,000 households in Singapore. There are approximately 849 child care and infant centres in Singapore, with an average of 75 children per centre. The department governing child care services in Singapore, the Ministry of Community Development, Youth and Sports (MCYS) has plans to approve approximately 200 more child care centres across Singapore over the next 5 years. Approximately half of the centres in Singapore are operated by voluntary organisations, and includes organisations funded by the Singapore government.
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